Which of the Following Is NOT a Difference Between a Currency

question 37

Multiple Choice

Which of the following is NOT a difference between a currency futures contract and a forward contract?

• A) The futures contract is marked to market daily, whereas the forward contract is only due to be settled at maturity.
• B) The counterparty to the futures participant is unknown with the clearinghouse stepping into each transaction, whereas the forward contract participants are in direct contact setting the forward specifications.
• C) A single sales commission covers both the purchase and sale of a futures contract, whereas there is no specific sales commission with a forward contract because banks earn a profit through the bid-ask spread.
• D) All of the above are true.

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Definitions:

Homeostasis

The regulation of internal conditions within an organism to maintain a stable, constant environment despite external changes.

Biological System

An organized group of organs and structures that work together to perform a specific function or task in a living organism, such as the nervous system or respiratory system.

Optimal Level

The most favorable point, degree, or amount of something for a particular situation or condition, resulting in the best possible outcome.

Suprachiasmatic Nucleus

A region in the brain, located in the hypothalamus, responsible for controlling circadian rhythms.