A Traded Futures Contract Is ________ as It Specifies in Detail

question 65

Multiple Choice

A traded futures contract is ________ as it specifies in detail the quantity and the quality of the underlying asset and where it is to be delivered.

• A) Marketed
• B) Normalized
• C) Convertible
• D) Redeemable
• E) Standardized

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Definitions:

Balance Of Trade

The difference between a country's exports and imports over a certain period, indicating whether a country has a surplus or deficit in trade.

Part

A component or piece that combines with other pieces to form a whole machine, system, or object.

Foreign Demand

The desire and willingness of buyers from other countries to purchase goods and services.

Dollar Depreciates

A decrease in the value of the U.S. dollar relative to other currencies in the foreign exchange market, making foreign goods more expensive and U.S. exports cheaper.