With Regard to Trading Location

question 40

Multiple Choice

With regard to trading location,

• A)forward contracts are traded competitively on organized exchanges.
• B)futures contracts are traded competitively on organized exchanges.
• C)futures contracts are traded by bank dealers via a network of telephones and computerized dealing systems.
• D)none of the options

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Definitions:

Securities

Financial instruments that represent ownership positions in corporations (stocks), creditor relationships with corporations or governmental bodies (bonds), or rights to ownership as represented by an option.

General Public

Refers to the broader community or populace that is not specifically involved with a particular area of interest or occupation.

Money Market Securities

Short-term financial instruments, typically with high liquidity and very low risk, such as Treasury bills and commercial paper.

Maturities

The dates on which debt instruments (such as bonds) or other financial contracts come due for payment of principal and interest.