Suppose you are a manager for a company that produces grape jelly. Which of the following is the best way for you to reduce your risk?
A) acquire a derivative that increases in value if grape prices increase
B) acquire a derivative that increases in value if grape jelly prices increase
C) sell a derivative that increases in value if grape prices increase
D) sell a derivative that increases in value if grape jelly prices increase
A
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If the dollar depreciates relative to other currencies, which of the following is true? a. It takes more of the other currency to buy a dollar
b. It takes less of the other currency to buy a dollar. c. There is no change in the amount of the currency needed to buy a dollar. d. Not enough information to determine.
For given inputs of labor and capital, if technology is more primitive, labor productivity will be
a. higher. b. lower. c. unchanged. d. characterized by increasing returns to scale.
If there is an increase in the demand for U.S. automobiles, the
A) demand for dollars will fall. B) demand for dollars will rise. C) supply of dollars will fall. D) supply of dollars will rise.
An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) the purchase of General Motors stock by a German resident. B) the purchase of a Mercedes-Benz by an American. C) a Nissan plant in Tennessee buying parts from the main plant in Japan. D) a gift of wheat from the United States government to Egypt.