Asked by Alexsis Oltsher on Jul 29, 2024
Verified
Who guarantees that a futures contract will be fulfilled?
A) The buyer
B) The seller
C) The broker
D) The clearinghouse
E) Nobody
Clearinghouse
An intermediary between buyers and sellers of financial instruments that ensures the orderly and efficient settlement of transactions.
Futures Contract
An official contract sanctioned by law for the buying or selling of a particular good at a set price, due at a future time.
Guarantee
A formal pledge to pay another's debt or to perform an obligation if the person who is supposed to pay or perform fails to do so.
- Know the entities responsible for guaranteeing futures contracts and their fulfillment.
Verified Answer
Learning Objectives
- Know the entities responsible for guaranteeing futures contracts and their fulfillment.
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