Which of the Following Observations Is True of Futures Contracts

question 9

Multiple Choice

Which of the following observations is true of futures contracts?

• A) Contracted through a dealer, usually a bank.
• B) Customized to meet contracting company's terms and needs.
• C) Typically no margin deposit required.
• D) Traded on an exchange and acquired through an exchange broker

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Definitions:

Financial Statements

Financial statements are comprehensive reports created by businesses to present their financial performance, position, and cash flows over a specific period, typically including the balance sheet, income statement, and statement of cash flows.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Account Titles

Specific names given to the various categories used in accounting to record transactions, representing different types of assets, liabilities, equity, revenue, and expenses.

Missing Amounts

In accounting and finance, refers to figures that are not reported or recorded and need to be determined through analysis or reconciliation.