What arguments are there against PSI's claims?
What will be an ideal response?
First, having a large open interest in the futures market is not the same as having a large industry market share in physical goods. Goods have relatively high production and distribution costs, and relatively long production and distribution cycles, which means these products are supplied to the market rather slowly. It is possible to corner a physical market by purchasing a large portion of the available supply, storing it, withholding delivery, and driving up the product's price. By contrast, it costs almost nothing to create a new futures contract, and it can be delivered instantaneously. Futures contracts cannot be stored with the intent to later withhold them from the market. As a result, controlling a large share of the open interest carries almost no power to restrict supply. Moreover, most market participants holding long futures positions reverse
(i.e., sell) them before maturity.
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The sales organization is interested in volume, not profits
Indicate whether the statement is true or false
Match the following definitions with terms 1 through 8. Place the letter that identifies the best definition in the blank space next to the term.____ 1. Generally accepted accounting principles____ 2. Time period assumption____ 3. Statement of owner's equity____ 4. Balance sheet____ 5. Income statement____ 6. Measurement (Cost) principle____ 7. Securities and Exchange Commission____ 8. IASB____ 9. Full disclosure principle____10. Statement of cash flowsa. Prescribes that assets and services to be recorded initially on a cash or equal-to-cash basis.b. Describes a company's revenues and expenses and computes net income or loss over a period of time.c. An independent group consisting of individuals from many countries that identify preferred accounting practices.d. Presumes that the life of
a company can be divided into periods for reporting purposes.e. The concepts and rules that govern financial accounting.f. A financial statement that reports the changes in equity over the reporting period; including increases such as owner investment and net income and for decreases such as owner withdrawals or net loss.g. A report that identifies cash receipts and cash payments over a period of time.h. Prescribes that a company report the details behind financial statements that would impact user decisions.i. The governmental agency that has the legal authority to establish accounting rules.j. A report that describes a company's financial position at a point in time. What will be an ideal response?
An Export-Import Bank is a(n):
a. large global bank that makes loans exclusively to international firms. b. U.S. government export finance agency that seeks to level international competition. c. derivatives market run by a syndicate of large banks. d. an organization that provides secure communications for trade documents. e. organization that provides large, wholesale dollar payments services for governments.
As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or less than the nominal rate on the deposit (or loan).
Answer the following statement true (T) or false (F)