Why is a forward contract also known as a derivative asset?
The value of future delivery in a forward contract depends on the market price of the commodity. Hence, it is considered to be a derivative asset.
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The present value of benefits (PVB) is found as
a. the discounted value of benefits for a single period without adjusting for inflation b. ?(bt/[1+rs]t), with bt= Bt/(1 + p)t c. ?(bt/[1–rs]t), with bt= Bt/(1 + p)t d. ?(bt/[1+rs]t), with bt= Bt/(1 –p)t
Which of the following was not one of the reasons that a Big Push might be necessary?
a. finding foreign markets for export b. indivisibility of investments c. long gestation period of investments d. lack of local entrepreneurs e. none of the above were reasons for a Big Push
What happens in the short run in the Keynesian model to the exchange rate and net exports in each of the following cases?
(a) The foreign real interest rate falls. (b) Foreign output rises. (c) Foreign demand for domestic goods rises. (d) Domestic output rises. (e) The domestic real interest rate falls.
During the crisis of 2008 housing prices ________ and stock prices ________. (Fill in the blank)
a. rose sharply; fell sharply b. fell sharply; rose sharply c. fell sharply; fell sharply d. rose sharply; rose sharply