Chapter 1

Chapter 1

12th Grade

5 Qs

quiz-placeholder

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Chapter 1

Chapter 1

Assessment

Quiz

Financial Education

12th Grade

Hard

Created by

n8fzkpr92s apple_user

FREE Resource

5 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a futures contract?

An agreement to buy or sell an asset immediately

An agreement to buy or sell an asset at a certain time in the future for a certain price

An agreement to buy or sell an asset at any time for any price

An agreement to buy or sell an asset at a certain time in the past for a certain price

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How are futures contracts traditionally traded?

Through interdealer brokers only

Through direct contact between buyers and sellers

Through online platforms only

Using the open outcry system where traders physically meet on the floor of the exchange

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role do banks often play in the derivatives markets?

Market makers for commonly traded instruments

Regulators overseeing all transactions

Auditors ensuring compliance

Legal advisors for contract disputes

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does it mean when banks act as market makers?

They only trade in spot contracts

They are not involved in the trading process

They only trade with other banks

They are always prepared to quote bid and offer prices for derivatives transactions

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do market participants in OTC derivatives markets find counterparties for their trades?

Contact each other directly or use an interdealer broker

Use the open outcry system on the exchange floor

Use online trading platforms exclusively

Trade only with banks