The agreement to provide a standardized commodity to a buyer on a specific date at a specific future price is
A) a put option.
B) a call option.
C) a futures contract.
D) a mortgage-backed security.
C
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A minimum wage that is above the equilibrium wage rate
A) increases efficiency within the labor market. B) increases the quantity of labor demanded. C) creates a deadweight loss. D) has no effect on the labor market because it is set above the equilibrium wage rate. E) None of the above answers is correct.
Why don't we see firms tie-in the sales of fish filets with the sales of pencils?
A) because the demands for these two goods are positively correlated B) because the demands for these two goods are negatively correlated C) because the demands for these two goods are independent D) It violates the Clean Food Act of 1908.
The basic purpose of economic models is to:
a. construct simplifying assumptions about the real world. b. explain reality in all its complexity. c. construct situations where controlled experiments can be carried out. d. provide explanations for, and predictions of the relationship between variables.
Suppose that in some year nominal interest rates are less than the rate of inflation. This means that:
A. money demand exceeds money supply. B. real interest rates are negative. C. real interest rates are positive and unusually high. D. real interest rates exceed nominal interest rates.