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The Fact That the Exchange Is the Counterparty to Every

question 9

Multiple Choice

The fact that the exchange is the counterparty to every futures contract issued is important because it eliminates ________ risk.


Definitions:

Small Company

A business with a small number of employees and a low volume of sales compared to larger companies in its industry.

Positive Statement

A statement that can be tested and validated; it describes what is and not what should be.

Federal Government

The national government of a federal republic, which possesses certain powers at the national level while other powers are shared with or reserved for the states.

Interest Rates

The percentage charged on a loan or paid on savings, effectively the price of capital.

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