Basic Difference(s) Between Forward and Futures Contracts Is That

question 3

Multiple Choice

basic difference(s) between forward and futures contracts is that

• A) forward contracts are individually tailored while futures contracts are standardized
• B) forward contracts are negotiated with banks whereas futures contracts are bought and sold on an organized exchange
• C) forward contracts have no daily limits on price fluctuations whereas futures contracts have a daily limit on price fluctuations
• D) all of the above

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Definitions:

Cognitive Development

The construction of thought processes, including remembering, problem-solving, and decision-making, from childhood through adolescence to adulthood.

Concrete Operational

A stage in Piaget's theory of cognitive development during which children gain the abilities of logical thought about concrete events, understanding conservation, and performing mathematical operations.

Abstract Thought

The ability to think about objects, principles, and ideas that are not physically present.

Social Activities

Interactions and engagements with others in a communal or public setting, often for leisure, networking, or support.