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Which of the Following Statements Is True of Contracts

Question 47

Multiple Choice

Which of the following statements is true of contracts?


A) They are used only in case of standardized transactions.
B) They protect a seller's investment in the transaction.
C) They allow the concerned parties to benefit from short-term price fluctuations in the market.
D) They reduce the impact of market risk on the transaction as well as economic value in the long run.

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