| Consider the following statements about Forward Markets: |
| 1. The forward market is an informal financial market. |
| 2. It is a market dealing in commodities, currencies and securities. |
| 3. The futures markets lead to reduction in the amplitude of seasonal price variation. |
| Which of the statements given above is/are correct? |
A) 1 and 3 only
B) 2 and 3 only
C) 1 and 2 only
D) All of the above
Correct Answer: D
Solution :
The forward market is the informal over-the-counter financial market by which contracts for future delivery are entered into. Standardized forward contracts are called futures contracts and traded on a futures exchange.
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