Which of the Following Is Not True Regarding Futures Contracts

question 145

Multiple Choice

Which of the following is not true regarding futures contracts?

• A) Unlike forward contracts, they are generally traded on an exchange.
• B) Futures contracts are standardized with respect to delivery date and size of the contract.
• C) There is an active over-the-counter market for currency futures contracts.
• D) Currency futures can be used by speculators who attempt to profit from exchange rate movements.

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Definitions:

Grapevine

An informal channel of communication, often characterized by rumor, gossip, or unofficial information, within an organization or community.

Organizations

Entities, either public or private, constructed for a specific purpose, characterized by structures and efforts towards collective goals.

Vertical Communication

Messages that are communicated according to an organization’s chain of command by flowing both upward and downward.

Organizations

Entities comprising multiple people working together towards common objectives, structured to coordinate their activities and resources.