CH20 FUTURES MULTIPLE CHOICE PRACTICE
Ch.20, Chapter 20: FUTURES
Multiple Choice Questions
1. Spot markets are for immediate delivery. Forward prices are:
a.
b.
c.
d.
The price agreed upon today for an asset for deferred delivery in the future.
The price in the future for an asset delivered in the future.
The price today for a forward price in the future.
Based on current spot market prices.
Ans: a
Difficulty: Moderate
Ref: An Overview of Futures Markets
2. A forward contract differs from a futures contract in that:
a.
b.
c.
d.
a forward contract is for a shorter period of time. a forward contract does not specify the selling price. a forward contract does specify the selling price. a forward contract is non-binding.
Ans: c
Difficulty: Moderate
Ref: Understanding Futures Markets
3. Futures contracts are regulated by the:
a.
b.
c.
d.
Securities Exchange Commission.
National Association of Security Dealers.
National Association of Commodity Dealers.
Commodity Futures Trading Commission.
Ans: d
Difficulty: Easy
Ref: Understanding Futures Markets
4.
A futures contract is
a.
b.
c.
a nonnegotiable, nonmarketable instrument. a security, like stocks and bonds. a standardized transferable agreement providing for the deferred delivery of a specified traded quantity of a commodity. not a legal contract, and therefore its terms can be changed .
d.
Ans: c
Chapter Twenty
Futures
257
Difficulty: Easy
Ref: Understanding Futures Markets
5.
Futures contracts were first traded on
a.
b.
c.
d.
stock indexes. foreign currencies. commodities. government bonds.
Ans: c
Difficulty: Easy
Ref: Understanding Futures Markets
6.
Which of the following variables is not established on a futures contract?
a.
b.
c.
d.
contract size price delivery date specified grade
Ans: b
Difficulty: Easy
Ref: Understanding Futures Markets
7.
Futures trade on the:
a.
b.
c.
d.
Spot market.
b.
over-the-counter market. forward exchanges. futures exchanges.
Ans: d
Difficulty: Easy
Ref: The Structure of Futures Markets
8.
Multiple Choice Questions
1. Spot markets are for immediate delivery. Forward prices are:
a.
b.
c.
d.
The price agreed upon today for an asset for deferred delivery in the future.
The price in the future for an asset delivered in the future.
The price today for a forward price in the future.
Based on current spot market prices.
Ans: a
Difficulty: Moderate
Ref: An Overview of Futures Markets
2. A forward contract differs from a futures contract in that:
a.
b.
c.
d.
a forward contract is for a shorter period of time. a forward contract does not specify the selling price. a forward contract does specify the selling price. a forward contract is non-binding.
Ans: c
Difficulty: Moderate
Ref: Understanding Futures Markets
3. Futures contracts are regulated by the:
a.
b.
c.
d.
Securities Exchange Commission.
National Association of Security Dealers.
National Association of Commodity Dealers.
Commodity Futures Trading Commission.
Ans: d
Difficulty: Easy
Ref: Understanding Futures Markets
4.
A futures contract is
a.
b.
c.
a nonnegotiable, nonmarketable instrument. a security, like stocks and bonds. a standardized transferable agreement providing for the deferred delivery of a specified traded quantity of a commodity. not a legal contract, and therefore its terms can be changed .
d.
Ans: c
Chapter Twenty
Futures
257
Difficulty: Easy
Ref: Understanding Futures Markets
5.
Futures contracts were first traded on
a.
b.
c.
d.
stock indexes. foreign currencies. commodities. government bonds.
Ans: c
Difficulty: Easy
Ref: Understanding Futures Markets
6.
Which of the following variables is not established on a futures contract?
a.
b.
c.
d.
contract size price delivery date specified grade
Ans: b
Difficulty: Easy
Ref: Understanding Futures Markets
7.
Futures trade on the:
a.
b.
c.
d.
Spot market.
b.
over-the-counter market. forward exchanges. futures exchanges.
Ans: d
Difficulty: Easy
Ref: The Structure of Futures Markets
8.