Which of the Following Statements Is Most CORRECT

question 6

Multiple Choice

Which of the following statements is most CORRECT?

• A) futures contracts generally trade on an organized exchange and are marked to market daily.
• B) goods are never delivered under forward contracts, but are almost always delivered under futures contracts.
• C) there are futures contracts for currencies but no forward contracts for currencies.
• D) futures contracts don't have any margin requirements but forward contracts do.
• E) one advantage of forward contracts is that they are default free.

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Definitions:

Anticipated Income

Anticipated income is the amount of money expected to be received in the future, from sources like work wages, investments, or other revenue streams.

Production and Consumption

The processes of creating goods and services (production) and using or purchasing them (consumption).

Goods and Services

The tangible products (goods) and intangible activities (services) that fulfill consumers' needs and wants, available through economic transactions.

Professional Obligations

Duties or responsibilities that professionals are expected to fulfill in adherence to the standards and ethics of their profession.