A futures contract does which of the following?

A. Sets the price and date for a commodity purchase in advance of that purchase.

B. Limits the future liability of one set of partners if a business fails.

C. Temporarily increases the supply of a commodity in order to meet demand.

D. Establishes a pegged exchange rate between two currencies.

Question

Zachariah Noble

History

31 May, 04:01

A futures contract does which of the following?

A. Sets the price and date for a commodity purchase in advance of that purchase.

B. Limits the future liability of one set of partners if a business fails.

C. Temporarily increases the supply of a commodity in order to meet demand.

D. Establishes a pegged exchange rate between two currencies.

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Answers (1)

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Briley Ali · Answer 1

The correct answer for the question that is being presented above is this one: "A. Sets the price and date for a commodity purchase in advance of that purchase." A futures contract is a standardized contract between two parties to buy or sell a specified asset of standardized quantity and quality for a price agreed upon today with delivery and payment occurring at a specified future date, the delivery date.