Which Is Not a Problem of Forward Contracts

question 2

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:

Exporting Goods

The act of sending goods or services produced in one country to another country for sale or trade.

U.S. Companies

Businesses that are registered, operate, or are headquartered in the United States.

Business Failure

The cessation of operations and the closing of a business due to its inability to make a profit or cover its expenses, leading to financial losses for owners and investors.

Business Termination

When a business ceases operation for any reason.