Standardization of derivative contracts:
A. makes the premiums involved with these contracts increase.
B. results in increased risk for the parties involved.
C. makes them more difficult to understand and therefore leads to increased misuse.
D. leads to greater liquidity and lower risk.
Answer: D
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The most direct way in which money replaces barter is through its use as a
A) medium of exchange. B) recording device. C) store of value. D) unit of account.
According to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage below the market clearing level. c. they explain real wage volatility. d. all of the above.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
The Federal Reserve was created in:
A. 1945. B. 1913. C. 1929. D. 1909.