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.

---

Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Volunteering

The act of offering one's time and services to a cause or organization without the expectation of financial compensation.

Structural Functionalism

A sociological paradigm that views society as a complex system whose parts work together to promote solidarity and stability through social institutions.

McDonaldization

George Ritzer’s term describing the spread of bureaucratic rationalization and the accompanying increases in efficiency and dehumanization.