Question
Identify the incorrect statement from the below:
1.Future contracts are tailor made contract. 2.Future contracts are subject to M2M settlements 3.There is more counterparty risk associated with forwards as opposed to futures. 4.Forward and futures contracts involve the agreement between two parties to buy and sell an asset at a specified price by a certain date. 5.Forward contracts have a better liquidity as compared to futures 6.Initial margin is required to enter a future contract.Solution
The forward contract is a custom-made or tailor-made contract, whereas a future contract is standardized in quantity, quality, and delivery date. Futures contracts have higher liquidity compared to forward contracts. This is because futures contracts are traded on organized exchanges, which provide a centralized marketplace where buyers and sellers can easily find counterparties to trade with.
Which of the following conditions does not  make EPF corpus withdrawal taxable?
Cisco has signed an agreement with the Karnataka government to train 40,000 people in cybersecurity skills and awareness. According to the memorandum of...
Dexie Ltd has a preferred stock that pays a dividend of 8 per share and the current price of stock is 100. What is the cost of preferred stock?
SEBI has in October 2021 has launched a new Mutual Fund that is called…….
Which major financial institution's new partnership was focused on offering a broad range of insurance products on the Policybazaar platform?
A loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for…………
...What is the limit of FPI investment in Government securities (G-secs) as a percentage of outstanding stocks of securities for FY 2022-23, as notified by...
Govt permits how much percent of FDI in oil & gas PSUs approved for disinvestment in private sector?
What is the primary objective of SIDBI's "Mission Swavalamban "?
W hat do you mean by ZED in the context of MSME manufacturing? Â
