The Basic Differences)between Forward and Futures Contracts Is That

question 4

Multiple Choice

The basic differences) between forward and futures contracts is that

• A)forward contracts are individually tailored while futures contracts are standardized
• B)forward contracts are negotiated with banks whereas futures contracts are bought and sold on an organized exchange
• C)forward contracts have no daily limits on price fluctuations whereas futures contracts have a daily limit on price fluctuations
• D)all of the above

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Definitions:

Correlation

A quantifiable measure that reflects how closely two or more variables are related in terms of their movements.

Size of The Blaze

The size of the blaze refers to the extent or area that a fire has covered or is covering, denoting the magnitude of the fire incident.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Scatterplot

A type of graph in which the values of two variables are plotted along two axes, the pattern of the points revealing any correlations.