Forward Contracts Are Often Illiquid Because

question 3

Multiple Choice

Forward contracts are often illiquid because

• A)any capital gains on them are heavily taxed, making investors reluctant to sell them.
• B)government regulation has not provided for a secondary market in them.
• C)they generally contain terms specific to the particular buyer and seller.
• D)the brokerage fees involved in buying and selling them are very high.

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Definitions:

Trauma

A physical or psychological injury or wound, often resulting from an intense stressor or event.

Afferent Fibers

Nerve fibers that carry sensory signals from the body's periphery towards the central nervous system.

Peripheral Nervous System

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord.

Efferent Fibers

Nerve fibers that carry signals away from the central nervous system to the peripheral effectors, such as muscles and glands.