Suppose that you are short in the cash market. Which of the following strategies creates a price ceiling for your purchased corn?
A. Take a long position in the futures market.
B. Take a short position in the futures market.
C. Buy a put option.
D. Buy a call option.
Ans: D. Buy a call option.
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What is the main difference between monopolistic competition and monopolies?
What will be an ideal response?
With the creation of the Federal Deposit Insurance Corporation
A) member banks of the Federal Reserve System were given the option to purchase FDIC insurance for their depositors, while non-member commercial banks were required to buy deposit insurance. B) member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors, while non-member commercial banks could choose to buy deposit insurance. C) both member and non-member banks of the Federal Reserve System were required to purchase FDIC insurance for their depositors. D) both member and non-member banks of the Federal Reserve System could choose, but were not required, to purchase FDIC insurance for their depositors.
The transactions demand for money is least likely to be a function of the
A. price level. B. frequency of wage and salary payments. C. interest rate. D. level of national income.
In an open economy, how many bikes will this country export?
A. 80,000 B. 60,000 C. 50,000 D. 20,000