A futures contract
A. gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract.
B. gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract.
C. is a contract in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
D. gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Answer: C
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Persistent current account deficits in the United States
A) cause persistent declines in investment in the United States. B) will eventually cause the value of the dollar to rise. C) can be seen as a vote of confidence in the strength of the U.S. economy. D) cause U.S. investors to accumulate more foreign assets than foreign investors accumulate U.S. assets.
The job market for which group always seems to have higher unemployment than the labor force as a whole? Why?
As a result of the 2007-2009 financial crisis, which two firms became bank holding companies, allowing them to engage in commercial banking activities?
A) Lehman Brothers and Merrill Lynch B) Freddie Mac and Fannie Mae C) Morgan Stanley and Goldman Sachs D) Enron and WorldCom
When firms differentiate their products, they
a. provide information to consumers with no additional use of productive resources b. always increase their profits c. always create real differences among products d. frequently create artificial or superficial differences among products, thus raising production costs e. usually strain the physical capacity of their plants