Despite the Fact That Forward Contracts Carry More Credit Risk

question 59

Multiple Choice

Despite the fact that forward contracts carry more credit risk than futures contracts,forward contracts offer what primary advantage over futures contracts?

• A)the over-the-counter forward market is a highly regulated market
• B)forward contracts prevent the writer from assuming the credit risk of the buyer
• C)terms and conditions are tailored to the specific needs of the two parties involved
• D)transaction information between the two parties involved in the forward contract is readily available to the public
• E)conditions of the forward contract,such as delivery date and location,cannot be altered

Identify and describe strategies for enhancing memory, including maintenance and elaborative rehearsal.

Recognize the limitations and potentials for error in eyewitness testimony and memory recall.

Define memory and understand its role as an active system in processing information.

Identify and explain the effects of disorders such as Alzheimer's disease on memory.

---

Definitions:

Tax Rate

The tax rate applicable to the income earned by individuals or corporations.

Straight-Line Depreciation

A method of calculating the depreciation of an asset by evenly spreading the cost over its expected useful life.

Depreciation Tax Shield

A deduction that reduces taxable income due to the depreciation of assets, thereby lowering one's tax liability.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applied to income or profit.