The Advantage That Standardization of Futures Contracts Brings Is That

question 81

Multiple Choice

The advantage that standardization of futures contracts brings is that ________ is improved because ________.

• A) liquidity; all traders must trade a small set of identical contracts
• B) credit risk; all traders understand the risk of the contracts
• C) pricing; convergence is more likely to take place with fewer contracts
• D) trading cost; trading volume is reduced

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Definitions:

Labor Standards

Regulations and norms that determine the minimal acceptable conditions for workers' rights, wages, hours, and working conditions.

Core Labor Standards

A set of principles related to workers' rights that are universally recognized and promoted, including prohibition of child labor, forced labor, discrimination, and the encouragement of collective bargaining.

Shareholder Value

A business approach focused on increasing the long-term value of a company for its shareholders, often measured by stock price appreciation and dividends.

American Corporation

A business entity incorporated in the United States, subject to U.S. corporate laws, and often characterized by its pursuit of profit and expansion.