Why are forward contracts typically illiquid?

What will be an ideal response?


Because forward contracts usually contain terms specific to the particular buyer and seller involved in a transaction, selling the contract is difficult because a buyer would have to accept the same terms.

Economics

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Norah works as a content writer for an online magazine. Because her work is not evaluated daily, she often spends her time playing online games, which adversely affects the quality of her work

a) What is the term used to refer to such behavior? b) What is the solution to this problem? Explain your answer.

Economics

The relatively rapid economic growth experienced by Chile in the late 1980s

A) supported the conventional Latin American reliance on import substitution. B) relied on the Harris-Todaro model to explain this growth. C) rejected the conventional Latin American reliance on import substitution. D) demonstrated the importance of market failure as a reason for import substitution. E) relied on high tariffs and import substitution.

Economics

Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. If the price of burger increases,

A) Max will buy less burger and more chicken. B) Max will buy less burger and the same quantity of chicken. C) Max will buy less of both meats. D) More information is needed to answer the question.

Economics

Which of the following would be the best example of an oligopolistic industry?

A) agriculture B) large aircraft manufacturing C) the local water supply D) retail convenience stores

Economics