Which of the Following Statements Regarding BAB Futures Contracts Traded

question 16

Multiple Choice

Which of the following statements regarding BAB futures contracts traded on the ASX is FALSE?

• A)The face value of each contract is $1 million.
• B)The prices at which contracts trade reveal the 90-day forward rates.
• C)The value of the BAB futures contract is 100 minus the yield.
• D)The contract item is always 90-day BABs.
• E)Contract dates are Mar/Jun/Sep/Dec for the next 5 years.

---

Definitions:

Issued

Pertains to the act of officially distributing or releasing something, such as securities or legal documents.

Monetary Policy

The management of a nation's money supply and interest rates by its central bank to control inflation and stabilize currency.

Recognition Lag

The delay between the onset of an economic problem and the time at which it is recognized by policymakers.

Decision Lag

The delay between recognizing the need for a decision and the actual implementation of that decision, often affecting the efficiency of response in economic policy.