A "clearinghouse" operated by the futures exchange handles:
A)the offices of the future contract buyers.
B)the location of the future contract sellers.
C)the payments between buyers and sellers.
D)the actual products bought and sold.

Question

Quizplus · Accepted Answer

A clearinghouse is responsible for settling payments between buyers and sellers of futures contracts. It acts as an intermediary, securing the trade by holding margin money and settling any gains or losses incurred. The exchange itself does not handle the actual physical products being bought and sold.

A "Clearinghouse" Operated by the Futures Exchange Handles