Which of the Following Is NOT an Advantage of Futures

question 109

Multiple Choice

Which of the following is NOT an advantage of futures contracts?

• A)They are inexpensive compared to customized forward contracts.
• B)They trade on exchanges rather than over the counter.
• C)Features such as contract size and expiration date are standardised.
• D)The size and commodity can always be perfectly tailored to form a perfect hedge.

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Definitions:

Government Purchases

Expenditures by government bodies on goods and services that directly absorb resources or satisfy human wants.

Tax Freedom Day

Tax Freedom Day represents the day of the year by which a nation’s citizens have collectively earned enough income to pay their total tax bill for the year, symbolizing the tax burden on taxpayers.

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The governing bodies of individual U.S. states, responsible for making and enforcing laws within their own jurisdictions.

Tax Revenue

The funds amassed by governments through the process of taxing.