Which Statement Is INCORRECT About Futures Contracts

question 7

Multiple Choice

Which statement is INCORRECT about futures contracts?

• A) Futures contracts are regulated.
• B) Futures require counterparties to know each other.
• C) Futures trades require margins.
• D) Performance of futures contracts are guaranteed by a clearinghouse.
• E) Most futures contracts are closed out before maturity.

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Definitions:

Melting Pot

A metaphor for a heterogeneous society becoming more homogeneous through the blending of different cultures, ethnicities, and nationalities.

Racial Perceptions

The ways in which people view and understand race, often influenced by societal norms, stereotypes, and personal experiences.

Potential Growth

The possible increase in an economy's output and productivity over time, considering the available resources and technology.

Blacks Are Athletic

A stereotype that generalizes the physical abilities of Black individuals, often overlooking the diversity of talents and reducing identity to physicality alone.