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. The Correct option is B

The Reduction in Motivated by the cost reduction activities which help the firm to lower the cost and increase the profit margin and the increase in technology also positively impacted this move.

2. The Correct option is B

The future contracts are the standardised contract to buy or sell the particular unerlying securities at a predetermined price and it is traded on the listed exchange while it is not true for forward transactions.