Futures Contracts Have Many Advantages Over Forward Contracts Except That

question 86

Multiple Choice

Futures contracts have many advantages over forward contracts except that ________.

• A) futures positions are easier to trade
• B) futures contracts are tailored to the specific needs of the investor
• C) futures trading preserves the anonymity of the participants
• D) counterparty credit risk is not a concern on futures

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Definitions:

Industrialized Cities

Urban areas that have undergone industrialization, characterized by the presence of factories, technological advancement, and high population density.

Rural Areas

Describes regions that are located outside towns and cities, often characterized by small populations and largely agricultural-based economies.

Extended Families

Family units that extend beyond the nuclear family, including grandparents, aunts, uncles, and other relatives who maintain close relationships.

Nuclear Families

A family unit consisting of two parents and their children (biological or adopted) living together in one household.