Which of the Following Statements Regarding Currency Futures Contracts and Forward

question 51

Multiple Choice

Which of the following statements regarding currency futures contracts and forward contracts is NOT true?

• A) A futures contract is a standardized amount per currency whereas the forward contact is for any size desired.
• B) A futures contract is for a fixed maturity whereas the forward contract is for any maturity you like up to one year.
• C) Futures contracts trade on organized exchanges whereas forwards take place between individuals and banks with other banks via telecom linkages.
• D) All of the above are true.

Understand the role of trade and specialization in the context of the PPF.

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Definitions:

Afferent

Describes nerves or pathways that carry sensory signals from the peripheral organs toward the central nervous system.

Impulses

Electrical or chemical signals transmitted through nerves in the body.

Center

The point that is equally distant from every point on the circumference of a circle or sphere, or the middle point of a given entity or space.

Arteritis

Inflammation of the arteries that can cause them to thicken, weaken, narrow, and scar, affecting blood flow.