To say that the forward market lacks liquidity means that
A) forward contracts usually result in losses.
B) forward contracts cannot be turned into cash.
C) it may be difficult to make the transaction.
D) forward contracts cannot be sold for cash.
C
You might also like to view...
In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A) dollar value of the additional output. B) area in the arc between the PPF and a straight line drawn between the starting point and the ending point. C) dollar value of the resources used to produce the good. D) amount of the other good or service that must be forgone. E) None of the above answers is correct.
If a price floor is removed, which of the following would be a result?
A. The elimination of surpluses B. Problems with the disposal of goods C. Disguised discounts to sell additional goods are offered by sellers D. Overinvestment in the industry
A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from
A) consumers to producers. B) producers to consumers. C) producers to government. D) government to consumers.
Suppose the economy's production function is Y = AK0.3N0.7. Suppose K = 200, N = 2000, and A = 1. Calculate the marginal product of capital
A) 1.0 B) 1.5 C) 2.0 D) 2.5