Which of the following persons is hedging?
A) A commodity speculator who confines his purchases or sales to futures contracts
B) A commodity speculator who confines his market activity to the purchase of futures
C) A commodity speculator who confines his market activity to the sale of futures
D) A farmer who buys September corn futures when he plants corn in May
E) A farmer who sells September corn futures when he plants corn in May
E
You might also like to view...
Assuming the inner curve is the United States' current production possibilities frontier, which of the following points would eventually lead to the greatest level of economic growth?
A. Point J
B. Point N
C. Point K
D. Point P
Andrew's utility of wealth schedule is given in the above table. The table indicates that his marginal utility of wealth ________ as his wealth increases
A) diminishes B) is constant C) increases D) increases first and then diminishes
Why should the United States be concerned over a sharp depreciation of the U.S. dollar in the world marketplace?
What will be an ideal response?
Which of the following arguments for trade restrictions is often advanced?
a. Trade restrictions make all Americans better off. b. Trade restrictions increase economic efficiency. c. Trade restrictions are necessary for economic growth. d. Trade restrictions are sometimes necessary for national security.