Futures Contracts Are Typically ____; Forward Contracts Are Typically ____

question 42

Multiple Choice

Futures contracts are typically ____; forward contracts are typically ____.

• A) sold on an exchange; sold on an exchange
• B) offered by commercial banks; sold on an exchange
• C) sold on an exchange; offered by commercial banks
• D) offered by commercial banks; offered by commercial banks

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Definitions:

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income, indicating how much of any additional income will be taken in taxes.

Sales Tax

A consumption tax imposed by the government on the sale of goods and services.

Structural

Relating to the underlying or foundational aspects or structures of a system, organization, or building.

Lump-Sum Tax

A tax that is a fixed amount and does not vary with the taxpayer's income or consumption levels.