The Main Difference Between a Forward Contract and a Cash

question 12

Multiple Choice

The main difference between a forward contract and a cash transaction is:

• A)only the cash transaction creates an obligation to perform.
• B)a forward is performed at a later date while the cash transaction is performed immediately.
• C)only one involves a deliverable instrument.
• D)neither allows for hedging.
• E)None of the above.

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Definitions:

Independent Variable

A variable in an experiment or study that is manipulated to determine its effect on a dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable(s).

Verbal Punishment

A method of discipline that involves reprimanding or scolding an individual through words.

Problem Behaviors

Actions or conduct that are considered inappropriate, troublesome, or challenging, especially within a societal, educational, or psychological context.