QCHAPTER 20 - Chapter 20 FUTURES Multiple Choice Questions...

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Chapter 20 FUTURES Multiple Choice Questions Understanding Futures Markets 1. Spot markets are: a. for a limited number of commodities. b. for immediate delivery c. for future delivery. d. markets designed to attract speculators. 2. A forward contract differs from a futures contract in that: a. a forward contract is for a shorter period of time. b. a forward contract does not specify the selling price. c. a forward contract does specify the selling price. d. a forward contract is non-binding. 3. Futures contracts are regulated by the: a. Securities Exchange Commission. b. National Association of Security Dealers. c. National Association of Commodity Dealers. d. Commodity Futures Trading Commission. 4. A futures contract is a. a nonnegotiable, nonmarketable instrument. b. a security, like stocks and bonds. c. a standardized transferable agreement providing for the deferred delivery of a specified traded quantity of a commodity. d. not a legal contract, and therefore its terms can be changed . 5. Futures contracts were first traded on a. stock indexes. b. foreign currencies. c. commodities. d. government bonds. 6. Which of the following variables is not established on a futures contract? a. contract size b. price c. delivery date Chapter Twenty Futures 1
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d. specified grade The Structure of Futures Markets 7. Futures trade on the: a. NYSE b. over-the-counter market. c. futures exchanges. e. options exchanges. 8. Futures exchange members: a. trade strictly for their own accounts. b. trade strictly for others. c. can trade for their own accounts or for others. d. are all controlled by commodity firms. 9. On the other side of every futures transaction is: a. the dealer. b. the futures exchange. c. the commodity producer. d. the clearinghouse. 10. An appealing feature of options on futures contracts is that: a. they have longer terms until expiration.
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This note was uploaded on 02/13/2012 for the course FINA 3480 taught by Professor Moore during the Fall '11 term at Toledo.

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QCHAPTER 20 - Chapter 20 FUTURES Multiple Choice Questions...

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