1.Futures have greater market liquidity than forward contracts, because futures are:

A)   standardized contracts.

B)   developed with specific characteristics to meet the needs of the buyer.

C)   sold only for widely traded commodities, unlike forwards.

D)   written for shorter periods of time.

2.Standardized futures contracts are an aid to increased market liquidity because:

A)   uniformity of the contract terms broadens the market for the futures by appealing to a greater number of traders.

B)   standardization results in less trading activity.

C)   non-standardized forward contracts are not allowed to trade.

D)   standardization of the futures contract stabilizes the market price of the underlying commodity.

3.Standardization features of futures contracts do not include the:

A)   delivery price of the commodity.

B)   quality of the good that can be delivered.

C)   delivery time.

D)   quantity of the good to be delivered.

4.All of the following are characteristics of futures contracts EXCEPT:

A)   they are liquid.

B)   the clearinghouse is a party to every contract.

C)   they trade in a dealer (over the counter) market.

D)   the contract size is standardized.

5.Which of the following statements regarding futures contracts is least accurate?

A)   The long will have gains when the futures price rises above the initial contract price.

B)   Futures contracts are typically very liquid securities.

C)   Price fluctuations can be any amount.

D)   The exchange sets the times of trading for futures contracts.

答案和详解如下：

1.Futures have greater market liquidity than forward contracts, because futures are:

A)   standardized contracts.

B)   developed with specific characteristics to meet the needs of the buyer.

C)   sold only for widely traded commodities, unlike forwards.

D)   written for shorter periods of time.

The correct answer was A)

Forward contracts do not have standardized terms as futures have. Forwards have the same terms as futures, but those terms are written to meet the specific needs of the two or more parties to the contract. This specialization limits the marketability, hence liquidity, of the forward contact.

2.Standardized futures contracts are an aid to increased market liquidity because:

A)   uniformity of the contract terms broadens the market for the futures by appealing to a greater number of traders.

B)   standardization results in less trading activity.

C)   non-standardized forward contracts are not allowed to trade.

D)   standardization of the futures contract stabilizes the market price of the underlying commodity.

The correct answer was A)

Although a forward may have value to someone other than the original counterparties, the non-standardized terms limit the level of interest, hence its marketability and liquidity. The standardized terms of a future give it far more flexibility to traders, giving rise to a strong secondary market and greater liquidity.

3.Standardization features of futures contracts do not include the:

A)   delivery price of the commodity.

B)   quality of the good that can be delivered.

C)   delivery time.

D)   quantity of the good to be delivered.

The correct answer was A)

The delivery, or spot price at contract expiration, of a commodity is a variable and cannot be included in a futures contract. Quality, quantity, and delivery time are all part of the standardized terms of a futures contract.

4.All of the following are characteristics of futures contracts EXCEPT:

A)   they are liquid.

B)   the clearinghouse is a party to every contract.

C)   they trade in a dealer (over the counter) market.

D)   the contract size is standardized.

The correct answer was C)

Futures contracts trade on organized exchanges; forward contracts are created by dealers.

5.Which of the following statements regarding futures contracts is least accurate?

A)   The long will have gains when the futures price rises above the initial contract price.

B)   Futures contracts are typically very liquid securities.

C)   Price fluctuations can be any amount.

D)   The exchange sets the times of trading for futures contracts.

The correct answer was C)

The minimum price fluctuation, called a ‘tick’, is set by the exchange. The other statements are true