Question
Identify the incorrect statement from the below:
1.Future contracts are tailor made contract. 2.Future contracts are subject to M2M settlements 3.There is more counterparty risk associated with forwards as opposed to futures. 4.Forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date. 5.Forward contracts have a better liquidity as compared to futures 6.Initial margin is required to enter a future contract.Solution
The forward contract is a custom-made or tailor-made contract, whereas a future contract is standardized in quantity, quality, and delivery date. Futures contracts have higher liquidity compared to forward contracts. This is because futures contracts are traded on organized exchanges, which provide a centralized marketplace where buyers and sellers can easily find counterparties to trade with.
Given below are four sentences in jumbled order. Pick the option that gives their correct order.
A. She had never seen the like of it before.
...Which of the following best sums up the central idea of the paragraph formed after rearrangement?
Which of the following is the fourth sentence of the passage?
1. Even though plants and animals
P. if their occurrence is natural,
Q. can adapt themselves to
R. changes in nature
...In the following questions, a sentence is given with two blanks. Identify the correct pair of words that fit in the sentence to make it grammatically a...
Given below are five jumbled sentences. Select the option that gives their correct logical sequence.
A: While the exact cause is debated, some...
Which of the following is the third sentence if the passage?
Given below are four sentences, which are jumbled. Pick the option that gives the correct order.
P - He decided to make curd with the remaining m...
Which of the following is the fourth sentence after rearrangement?
The beautiful house and
P. a tinge of sadness in
Q. its visible luxury caused
R. the heart of the poor porter
