Futures Differ from Forwards Because They Are

question 90

Multiple Choice

Futures differ from forwards because they are

• A) used to hedge portfolios.
• B) used to hedge individual securities.
• C) used in both financial and foreign exchange markets.
• D) marked to market daily.

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Definitions:

Compensatory Rule

A decision rule used in consumer choice where the negative aspects of a product can be compensated by its positive aspects.

Price-Quality Relationship

The perceived association between the cost of a product or service and its quality, influencing consumer decision-making.

Product Signal

Indicators or features of a product that communicate its quality, authenticity, or prestige to consumers.

Inertia

The tendency to remain unchanged or idle in one's attitudes, behavior, or decisions due to psychological resistance to change.