The Major Difference Between Currency Futures and Forward Contracts Is

question 61

True/False

The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients.

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Definitions:

Formal Operational Thought

In Piaget’s theory, the fourth and final stage of cognitive development, characterized by more systematic logical thinking and by the ability to understand and systematically manipulate abstract concepts.

Metacognition

The awareness and understanding of one's own thought processes, often referred to as "thinking about thinking."

Hypothetical Thought

The ability to consider ideas, scenarios, and possibilities that do not necessarily reflect current reality or direct experiences.

Deductive Reasoning

A method of deduction where a final judgment comes from the consistency of numerous assumed-to-be-true premises.