The Chicago Board of Trade promotes liquidity in the futures market by
A) setting prices.
B) establishing a price floor.
C) allowing the short or the long to renegotiate contract terms.
D) standardizing contract terms.
D
You might also like to view...
Investors are often willing to pay positive prices for shares of firms that have never earned a profit because the investors
a. do not know the firms have never earned a profit. b. expect the firms to have positive net earnings in the future. c. expect that interest rates will rise in the future. d. expect that higher rates of inflation will push stock prices higher in the future.
Most economists believe that in the short run
a. real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend. b. real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend. c. real and nominal variables are highly intertwined but that money cannot move real GDP away from its long-run trend. d. real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Alternative proposals to change the current system of exchange rates include
a. a new explicit system of fixed exchange rates. b. adjustable target zones for exchange rates. c. a dirty float rate system. d. Both a and b e. Both b and c