The Most Active Trading in Forward Contracts Is In

question 60

Multiple Choice

The most active trading in forward contracts is in:

• A) U.S. Treasury bills.
• B) the Standard and Poor's index.
• C) wheat crops.
• D) foreign currencies.

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Definitions:

Probability

A numerical expression between 0 and 1 that indicates how likely an event is to occur.

Property Loss

Property loss refers to the damage or destruction of property, leading to a financial loss to the owner or insured party.

Adverse Selection

This occurs when there is a lack of symmetric information prior to a deal, leading parties with higher risk to be more likely to engage in an agreement, notably impacting insurance and finance markets.

Reckless Drivers

Individuals who operate vehicles in a careless or heedless manner without regard for the rules of the road or the safety of others.