Why Are Forward Contracts Typically Illiquid

question 52

Essay

Why are forward contracts typically illiquid?

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Definitions:

Privatization

The process of transferring an enterprise or industry from the public sector to the private sector.

Means of Production

The resources and tools used to produce goods and services, including land, labor, and capital, a concept central to Marxist theory.

Agricultural Revolution

The social and economic changes, including population increases, that followed from the domestication of plants and animals and the gradually increasing efficiency of food production.

Mechanized Seed Spreaders

Agricultural tools or machines designed for distributing seeds over the soil in an efficient and uniform manner, enhancing sowing processes.