Which of the Following Characteristics Apply to Futures Contracts

question 40

Multiple Choice

Which of the following characteristics apply to futures contracts?
I. Futures contracts are an important tool to control risk.
II. Futures contracts are highly risky and involve speculation.
III. Futures contracts specify both the quantity and the quality of the item.
IV. The buyer must hold the contract until maturity.

• A) I and II only
• B) II and IV only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Introduction

The beginning section of a document or speech that sets the stage for the content that follows, often outlining the purpose or main theme.

Routine Request

A standard or common request for information, services, or action, typically part of regular operations or procedures.

Routine Requests

Standard or regular inquiries or appeals made in a professional or organizational context.

Audience Compliance

The degree to which an audience follows, agrees with, or acts upon the requests or suggestions made by a speaker or writer.