Click in the circle to select the best answer for each of the following multiple choice questions.
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(a) - the same as forward contracts.
(b) - standardized contracts to make or take delivery of a commodity at a predetermined place and time.
(c) - contracts with standardized price terms.
(d) - all of the above.

(a) - bids and offers.
(b) - officers and directors of the exchange.
(c) - written and sealed bids.
(d) - the Board of Trade Clearing Corporation.
(e) - both (b) and (d).

(a) - prevent speculation in futures contracts.
(b) - ensure the integrity of the contracts traded.
(c) - clear every trade made at the CME Group.
(d) - supervise trading on the exchange floor.
(e) - both (b) and (c).

(a) - by signing promissory notes.
(b) - each day after the close of trading.
(c) - within five business days.
(d) - directly between the buyer and seller.
(e) - none of the above.

(a) - increase the number of potential buyers and sellers in the market.
(b) - add to market liquidity.
(c) - aid in the process of price discovery.
(d) - facilitate hedging.
(e) - all of the above.

(a) - taking a futures position opposite to one's cash market position.
(b) - taking a futures position identical to one's cash market position.
(c) - holding only a futures market position.
(d) - holding only a cash market position.
(e) - none of the above.

(a) - serve the same purpose as margins for common stock.
(b) - limit the use of credit in buying commodities.
(c) - serve as a down payment.
(d) - serve as a performance bond.
(e) - are required only for long positions.

(a) - you have a long (buy) futures position and prices increase.
(b) - you have a long (buy) futures position and prices decrease.
(c) - you have a short (sell) futures position and prices increase.
(d) - you have a short (sell) futures position and prices decrease.
(e) - both (a) and (d).
(f) - both (b) and (c).

(a) - the Federal Reserve Board.
(b) - the Commodity Futures Trading Commission.
(c) - the brokerage firms, subject to exchange minimums.
(d) - the Clearing Corporation.
(e) - private agreement between buyer and seller.

(a) - as soon as the funds are credited.
(b) - only after the futures position is liquidated.
(c) - only after the account is closed.
(d) - at the end of the month.
(e) - at the end of the year.