Which of the Following Observations Is True of Futures Contracts

question 9

Multiple Choice

Which of the following observations is true of futures contracts?

• A) Contracted through a dealer, usually a bank.
• B) Customized to meet contracting company's terms and needs.
• C) Typically no margin deposit required.
• D) Traded on an exchange and acquired through an exchange broker

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Definitions:

Manufacturing Product

The end result of the manufacturing process, which is the production of goods in a factory.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods within a specific period, including materials, labor, and overhead.

Raw Materials

Basic materials and substances used in the initial stages of the production process.

Purchased

A term referring to items or services acquired by a company or individual, typically in exchange for money.