Which Is Not a Problem of Forward Contracts

question 115

Multiple Choice

Which is not a problem of forward contracts?

• A) A lack of liquidity
• B) A lack of flexibility
• C) The difficulty of finding a counterparty
• D) Default risk

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Definitions:

Producers

Organisms, typically plants or algae, that produce organic compounds from simple substances such as carbon dioxide, serving as a base for all food chains.

Control Group

Of an experiment, group of individuals identical to an experimental group except for the independent variable under investigation.

Experimental Group

In an experiment, group of individuals who have a certain characteristic or receive a certain treatment as compared with a control group.

Inductive Reasoning

A method of reasoning in which general principles are inferred from specific observations.