The Advantage That Standardization of Futures Contracts Brings Is That

question 81

Multiple Choice

The advantage that standardization of futures contracts brings is that ________ is improved because ________.

• A) liquidity; all traders must trade a small set of identical contracts
• B) credit risk; all traders understand the risk of the contracts
• C) pricing; convergence is more likely to take place with fewer contracts
• D) trading cost; trading volume is reduced

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Definitions:

Gasoline Rises

This term likely refers to an increase in gasoline prices or the quantity of gasoline, typically discussed in economic or environmental contexts.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.

Price

The amount of money required to purchase a good or service.

Alternative Energy Sources

refer to sources of energy that are considered alternatives to the most commonly used non-sustainable sources, such as fossil fuels, including wind, solar, and hydroelectric power.