Which of the following is true for futures contracts?
A)They do not have standardized terms.
B)They have clearinghouses that guarantee the transactions.
C)They are private contracts between two parties.
D)The parties have a higher risk of defaulting on a contract.
E)The settlement of a futures contract occurs at the end of the contract.

Question

Quizplus · Accepted Answer

Futures contracts are standardized agreements traded on exchanges, and clearinghouses guarantee the transactions, reducing the risk of default.

Which of the Following Is True for Futures Contracts