An individual who neither uses nor produces a commodity but sells a futures contract for the asset is:
A. hedging trying to transfer risk.
B. speculating that the price of the commodity is going to fall.
C. speculating that the price of the commodity is going to increase.
D. using arbitrage to earn profits without taking a risk.
Answer: B
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When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1
A) decreases. B) does not change. C) increases. D) changes, but the direction of the change depends on whether the deposit was accepted by a thrift institution or a commercial bank. E) changes only if Bank of America does not have excess reserves.
In most applications of negotiations, they
a. Follow rules of a formal game b. Follow the rules of games like the simultaneous move game of chicken c. Rarely have rules like the ones that characterize formal games d. All of the above
Which of the following categories constitutes the majority of federal outlays in 2016?
a. National defense b. Interest on the federal debt c. Social Security, Medicare, and welfare d. Grants to states and localities e. Capital expenditures
Three of these are examples of nonprice competition. Select the one which is not an example of nonprice competition.
a. location b. physical characteristics c. advertising d. discounts