There Are a Number of Differences Between Forward and Futures

question 61

Multiple Choice

There are a number of differences between forward and futures contracts. Which of the following statements is FALSE?

• A) Futures have less liquidity risk than forward contracts.
• B) Futures have less credit risk than forward contracts.
• C) Futures have more default risk than forward contracts.
• D) In futures, the exchange becomes the counterparty to all transactions.
• E) Futures have standardized terms of agreement.

Analyze the allocation of R&D expenditures by U.S. business firms.

Differentiate between innovation and invention in the context of commercialization and scientific research.

Discuss the economic viewpoint on technological advances as a response to market mechanisms.

Evaluate the decision-making process involved in R&D spending by firms.

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Definitions:

Chief Communications Officer

A senior executive responsible for managing and directing an organization's internal and external communications strategies and efforts.

Public Relations

The method of strategic messaging that enhances reciprocal relations between institutions and their communities.

Public Affairs

A field focused on building and maintaining relationships between an organization and the public, including handling PR, communication strategies, and community engagement.

Stakeholders

People or organizations who have a “stake” in a company/organization, including employees, voters, government agencies and elected officials, customers, prospective employees, as well as customers and other similar individuals.