You may receive a margin call if
A. You have a long (buying) futures position and prices increase
B. You have a long (buying) futures position and prices decrease
C. You have a short (selling) futures position and prices increase
D. Both B and C.
Ans: D. Both B and C.
You might also like to view...
Economists are concerned with an individual's
A) needs because needs are most important to an individual's well being. B) needs because economists define needs to be the goods people need to survive. C) wants because wants always lead to shortages in the economy. D) wants because the existence of wants leads to scarcity.
The open economy effect refers to the fact that
A. the slope of the aggregate demand curve is partially explained by the reduction in the desire to buy fewer U.S. goods by U.S. residents and foreign residents as a result of a higher price level. B. the position and shape of the long run aggregate supply curve is partially due to the fact that we import goods. C. the aggregate supply curve shifts when the economy grows. D. the immigration policies of the United States are disruptive to labor markets.
Utility refers to
A) the usefulness of a good or service. B) the value of a good or service. C) the want-satisfying power of a good or service. D) the degree to which a good or service is needed.
The experience of sub-Saharan Africa, as compared to that of "Other Asia" (not including the HPAEs) supports the argument that
A) high rates of protection tend to harm economic growth. B) the poorer is the country the easier it is for it to "catch up" economically. C) low rates of protection tend to promote economic growth. D) free trade always best stimulates a developing country's economy. E) neither trade liberalization nor import substitution is a foolproof strategy for economic development.