The Advantage That Standardisation of Futures Contracts Brings Is That

question 11

Multiple Choice

The advantage that standardisation of futures contracts brings is that ________ is improved because ________.

• A)liquidity; all traders must trade a small set of identical contracts
• B)credit risk; all traders understand the risk of the contracts
• C)pricing; convergence is more likely to take place with fewer contracts
• D)trading cost; trading volume is reduced

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Definitions:

Nineteenth Century

The period from January 1, 1801, to December 31, 1900, characterized by significant industrial, cultural, and political changes worldwide.

Fourteenth Amendment

An amendment to the U.S. Constitution, adopted in 1868, that granted citizenship to all persons born or naturalized in the United States, including former slaves, and provided equal protection under the laws.

Literacy Requirements

Mandates or conditions set by authorities requiring individuals to demonstrate a certain level of reading and writing proficiency, often for voting or employment purposes.

United States V. Wong Kim Ark

A landmark Supreme Court case in 1898 that established that children born in the United States to foreign parents are citizens under the 14th Amendment.