Which One of the Following Is a Contract Managed by an Organized

question 15

Multiple Choice

Which one of the following is a contract managed by an organized exchange that allows a buyer and seller to agree on a price today for an exchange of goods that will occur sometime in the future?

• A)futures contract
• B)spot market
• C)cash market
• D)forward contract
• E)discounted contract

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Definitions:

Average Annual Gross Receipts

The average amount of money received by a business before any deductions over a specified period, typically 3 to 5 years.

Subject

In general terms, this refers to the main topic or entity being discussed or analyzed.

FMV

Fair Market Value; the price an asset would sell for on the open market between a willing buyer and a willing seller.

Basis

The amount of investment in an asset for tax purposes, used to calculate gain or loss on the asset's sale.