A swap is
A) another name for a put option.
B) another name for a call option.
C) an agreement between two or more persons to exchange sets of cash flows over some future period.
D) the name for the replacement of a futures contract by an options contract.
C
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Voluntary export restraints are illegal under international trading rules
Indicate whether the statement is true or false
A price increase will always increase a firm’s revenue.
Answer the following statement true (T) or false (F)
The traditional view of fixed rate systems was that
A) they improved inflation but were worse for growth. B) they improved stability but were worse for inflation. C) they improved inflation but worsened stability. D) they improved growth but worsened inflation.
The nominal rate of interest is
A) the rate observed in the market that includes an inflation premium. B) not the rate observed in the market. C) not adjusted for inflation. D) expressed in dollars from the chosen base year.