Which of the Following Is True

question 25

Multiple Choice

Which of the following is true?

• A) Most forward contracts between firms and banks are for speculative purposes.
• B) Most future contracts represent a conservative approach by firms to hedge foreign trade.
• C) The forward contracts offered by banks have maturities for only four possible dates in the future.
• D) none of the above

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Definitions:

Primary Obligation

A primary obligation is the main responsibility or liability that a party is bound to fulfill under the terms of a contract or agreement.

Oral Sales Contract

A verbal agreement between parties for the purchase and sale of goods or services, which may be legally binding depending on the context and the nature of the transaction.

Enforceable

Refers to a legal agreement that can be upheld or compelled in a court of law.

UCC's Statute

A legal guideline adopted to harmonize the law of sales and other commercial transactions across the United States.