Which of the Following Is NOT a Role of the Clearinghouse

question 21

Multiple Choice

Which of the following is NOT a role of the clearinghouse in the futures market?

• A)To guarantee the performance of each position.
• B)To close out the position of defaulting traders.
• C)To act as a counterparty to buyers and the sellers.
• D)To take or make delivery of the underlying asset.
• E)To operate a system of margin payments.

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Definitions:

Consolidating

The process of combining financial statements of separate entities within a corporate group to present as if they were a single economic entity.

Capital Fund

A fund dedicated to financing long-term investment projects or for acquiring fixed assets.

Unrestricted Contribution

Donations or funding received without stipulations on how they must be spent, allowing the recipient discretion in their use.

Useful Life

The expected period of time during which an asset is useful to the average owner and can generate income or benefits.