An arrangement in which Kathleen sells some of her barley when it is planted, with the promise to deliver it and receive payment after it is harvested, is called
A) a savings contract.
B) a deferred private bond.
C) a futures contract.
D) a commodity transfer.
C
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Explain why environmental damage would be classified as an externality.
What will be an ideal response?
The type of policy that involves changes in taxes or spending by the federal government is known as:
A) fiscal policy. B) monetary policy. C) strategic financial policy. D) federal policy.
When interest rates fall, a bank that perfectly hedges its portfolio of Treasury securities in the futures market
A) suffers a loss. B) experiences a gain. C) has no change in its income. D) may either gain, lose or see no change in its income.
If the government accelerates money supply growth and enlarges the budget deficit to stimulate aggregate demand, the rational expectations hypothesis indicates that decision makers will
a. ignore the policy until it exerts an observable impact on prices, output, and employment. b. quickly take steps to adjust their decision making in light of the more expansionary policies. c. be fooled at the outset but eventually adjust their decision making in accordance with the change in policy. d. be unaware that this policy change has been implemented until a higher rate of inflation is observed.