Forward Contracts

question 48

Multiple Choice

Forward contracts

• A) can never be arranged in the over-the-counter market.
• B) are less standardized than futures contracts.
• C) cannot be customized to meet the hedging needs of the buyer.
• D) are never marked-to-market.
• E) have a high liquidity risk related to immediate cash access to pay for possible losses.

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Definitions:

Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed

Less Bureaucracy

An approach aiming for streamlined operations, with fewer levels of hierarchy and simpler procedures.

Workflow Analysis

The study of business processes, identifying tasks and their sequences, to improve efficiency and effectiveness.