Assume you are holding Treasury securities and have sold futures to hedge against interest-rate risk. If interest rates fall
A) the increase in the value of the securities equals the decrease in the value of the futures contracts.
B) the decrease in the value of the securities equals the increase in the value of the futures contracts.
C) both the securities and the futures contracts decrease in value.
D) both the securities and the futures contracts increase in value.
A
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A barter economy is one in which:
a. money serves as a medium of exchange. b. only precious metals are accepted as money. c. goods are traded directly for other goods. d. paper money is backed by gold.
Suppose the equilibrium price of a tube of toothpaste is $2, and the government imposes a price floor of $3 per tube. As a result of the price floor,
a. quantity demanded decreases. b. quantity supplied increases. c. there is a surplus. d. All of the above are correct.
The International Court of Justice (ICJ) is the primary international court, also referred to unofficially as
a. Nuremburg. b. the International Criminal Court. c. the Dispute Settlement Body. d. the World Court.