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.

---

Definitions:

Goodwill Impairment

The financial recognition that the value of the goodwill acquired in a business combination has decreased, indicating that the carrying value of the goodwill is no longer supported by the future economic benefits it was expected to generate.

Reporting Unit

A component of an entity for which discrete financial information is available and is reviewed regularly by the operating segment's management.

Fair Value

The sum fetched from the sale of an asset or spent on the transition of a liability in a smooth transaction involving market participants at the time of assessment.

Foreign Currency Nonmonetary Assets

Assets that are not in cash and are not expected to be converted into cash in the near future, valued in a currency other than the entity's functional currency.