Suppose you are currently in the long position of a long-term bond. In this case, to hedge against a capital loss, you would enter into a ________ contract to ________ a long-term bond in the future
A) interest-rate forward; sell
B) interest-rate forward; buy
C) exchange-rate forward; buy
D) exchange-rate forward; sell
A
You might also like to view...
The traditional Keynesian approach concludes that an increase in government spending
A) generates a greater increase in investment spending. B) generates a greater increase in total spending because consumption spending increases as incomes increase. C) has no effect on total spending because consumers increase saving by an equal amount. D) generates an equal increase in total spending because government spending makes up part of total spending.
Costs that are incurred by a business are called ________. Examples include salaries, equipment, travel, rent, and insurance.
a. profit b. expenses c. revenue d. outflow e. debt
Most economists are against rent control, in part, because it:
a. leads to surpluses b. encourages landlords to build too many apartments c. Discourages tenants from searching for apartments d. encourages landlords to overspend in upkeep and maintenance on apartments e. none of the above
Compared to monopoly, the market results with monopolistic competition are usually expected to be:
A. worse because consumers get fewer choices. B. worse because consumers pay a higher price. C. better because consumers pay a lower price. D. better because consumers get less output.