Which One of the Following Statements Is Correct

question 17

Multiple Choice

Which one of the following statements is correct?

• A)Futures contracts must be held to maturity.
• B)Futures contracts can be closed out only by contract buyers.
• C)Futures contracts can be closed out, but only during the week prior to maturity.
• D)You cannot avoid accepting delivery once you purchase a futures contract.
• E)Futures contracts can be closed out by entering a reverse trade.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefits to society from the production and consumption of goods or services.

Property Rights

Legal rights to use, control, and benefit from owning property, both tangible and intangible.

Economic Signals

Indicators or pieces of data that inform individuals or markets about the health of the economy or trends in economic activity, potentially guiding decision-making.

Efficiency

The extent to which time, effort, or cost is well used for the intended task or purpose.