Which of the Following Statements Is Incorrect Regarding Organized Exchanges

question 25

Multiple Choice

Which of the following statements is incorrect regarding organized exchanges trading financial futures contracts?

• A)Organized exchanges establish and enforce rules for the trading of financial futures contracts.
• B)Organized exchanges ensure that the seller of the futures contract always delivers the securities covered by the contract, whether the contract was settled prior to the settlement date or not.
• C)Organized exchanges clear, settle, and guarantee all transactions that occur on their exchanges.
• D)The operations of financial futures exchanges are regulated by the Commodity Futures Trading Commission (CFTC).
• E)All of the above are correct.

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Definitions:

Economic Development

A process by which a nation improves the economic, political, and social well-being of its people.

Environmental Degradation

The deterioration of the natural environment due to human activity, leading to the depletion of resources and loss of biodiversity.

Global Stratification

The unequal distribution of wealth, power, and resources among countries worldwide.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms that were buried millions of years ago.