Futures contracts avoid the difficulties of forward contracts by:
A) efficiently linking buyers and sellers.
B) controlling the price of the commodity being traded.
C) allowing speculators to make a profit on futures contracts.
D) covering any losses incurred by buyers and sellers on the contract.

Question

Quizplus · Accepted Answer

Futures contracts are standardized and traded on exchanges, which efficiently link buyers and sellers, unlike forward contracts which are private and less liquid.

Futures Contracts Avoid the Difficulties of Forward Contracts By