A(n) __________ is a standardized agreement that calls for the delivery of a specific underlying commodity or security at some future date at a currently agreed-upon price
A) option contract
B) swap
C) futures contract
D) forward contract
C
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The prediction that workers get additional training only when the rewards from the training are expected to exceed the costs of the training (including the opportunity costs) is based on the:
A. cost-benefit principle. B. principle of comparative advantage. C. principle of diminishing returns to capital. D. scarcity principle.
The law of large numbers:
A) can be used to explain why some people are risk averse and others are risk neutral or risk loving. B) can be used to explain why some people choose to self-insure against random, single and largely unpredictable events. C) states that large amounts of information are often preferred to small amounts of information. D) states that the average outcome of a large number of similar events can often be predicted.
For an imaginary economy, the consumer price index was 115.00 in 2004, 126.50 in 2005, and 136.62 in 2006 . Which of the following statements is correct?
a. For this economy, the base year must be 2004. b. If the basket of goods that is used to calculate the CPI cost $75.00 in the base year, then that basket of goods cost $115.00 in 2004. c. This economy's rate of inflation for 2006 is 10.12 percent. d. None of the above is correct.
An increase in the price level in an economy will
What will be an ideal response?