A Futures Contract Is

question 23

Multiple Choice

A futures contract is

• A)a nonnegotiable,nonmarketable instrument.
• B)a security,like stocks and bonds.
• C)a standardized transferable agreement providing for the deferred delivery of a specified traded quantity of a commodity.
• D)not a legal contract,and therefore its terms can be changed .

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Definitions:

Utility Maximization

The economic principle that individuals seek to obtain the highest level of satisfaction or utility from their consumption choices, given their preferences and constraints.

Hypothetical Consumer

A model or theoretical individual used in economics and marketing to represent and analyze consumer behavior and decision-making processes.

Utility Maximization

The economic principle that individuals or firms attempt to allocate their resources in a manner that maximizes their satisfaction or profit.

Marginal Utility

The supplementary enjoyment a consumer experiences when they consume an extra unit of a good or service.