All of the Following Are Roles of a Exchange EXCEPT

question 12

Multiple Choice

All of the following are roles of a exchange EXCEPT

• A)instituting margin requirements on futures contracts.
• B)marking to market at the end of each day.
• C)eliminate the need for buyers and sellers of futures contracts to be concerned about the creditworthiness of each other.
• D)reducing the default risk involving forward contracts.

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Definitions:

Verbalize Information

The act of expressing thoughts, ideas, or facts in spoken words.

Mentally

Pertains to processes or activities related to the mind, such as thinking, perceiving, remembering, and feeling.

Overregularization

The application of regular grammatical rules for forming inflections to irregular verbs and nouns.

Grammatical Rules

The guidelines that structure the use of language, including syntax, morphology, and semantics.