Forward contracts

A) are highly liquid.
B) entail small information costs.
C) provide little risk sharing.
D) are subject to default risk.


D

Economics

You might also like to view...

The IS curve

A) is horizontal. B) is vertical. C) slopes downward. D) slopes upward.

Economics

By the mid-nineteenth century,

(a) indentured servitude disappeared in the U.S. (b) slavery was disappearing. (c) more and more immigrants were drawn into the production of agricultural goods on large plantations. (d) all of the above were true.

Economics

If S = -200 + 0.2Y and I = 100, then the equilibrium level of income is

A. 1,200. B. 1,500. C. 3,000. D. 4,000.

Economics

If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded

A) a full-employment equilibrium occurs. B) actual GDP equals potential GDP. C) the supply curve of labor is vertical. D) Both answers A and B are correct.

Economics