Question

1. The gradual reduction of bank branches has been motivated by:
Select one:
a. geographical spread.
b. cost reduction.
c. activity diversification.
d. safety.

2. Futures contracts differ from forwarding contracts in all of the following ways except:
Select one:
a. futures markets are more formal than forwarding markets.
b. futures contracts are standardized; forward contracts are not.
c. forward contracts involve an intermediary or exchange.
d. delivery is made most often in forwarding contracts.

Answer 1

1. Cost reduction

The Bank branches reduction is a scenario of cost reduction activity as the firm would be able to cut the cost and provide necessary services to the essential customers also it will lead to Increment of Operating profit.

2.Futures contracts are standardized; forward contracts are not

The Future contracts are standardized contract which are traded on stock exchange while the forward contract is a non standardized contract among the two parties.