For the settlement of futures contracts, the clearing corporation requires that a margin be placed with the corporation by
A) the short position only.
B) the long position only.
C) the short and the long in all contracts.
D) the short and the long only in extraordinary circumstances.
C
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The interest rate is:
A. only a return to borrowers. B. both a cost to savers and a return to borrowers. C. both a return to savers and a cost to borrowers. D. a cost to both savers and borrowers. E. only a cost to savers.
The quantity of money demanded will decrease if the
A) nominal interest rate decreases. B) price level rises. C) real interest rate decreases. D) inflation rate decreases. E) nominal interest rate increases.
By drawing a demand curve with price on the vertical axis and quantity on the horizontal axis, economists assume that the most important determinant of the demand for a good is
A) consumer tastes and preferences. B) the quality of the good. C) the price of the good. D) consumer income.
If a market is allowed to adjust freely to its equilibrium price and quantity, then an increase in demand will
a. increase producer surplus. b. reduce producer surplus. c. not affect producer surplus. d. Any of the above are possible.