An arbitrageur is someone who:
A. simultaneously buys and sells financial instruments to benefit from temporary price differences.
B. seeks the high returns that come from the high risk inherent in futures markets.
C. always takes the short position in a futures contract.
D. always takes the long position in a futures contract.
Answer: A
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Refer to Game Matrix II. Which outcomes in this game are Nash equilibria?
Game Matrix II
The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even."
a. The upper right-hand corner only.
b. The upper left-hand corner only.
c. Both the upper right-hand and lower left-hand corners.
d. This game has no Nash equilibria.
Suppose the economy is producing below potential GDP and the Federal Reserve implements the appropriate change in monetary policy, but not until after the economy has started to recover from the recession. In this situation there is a real danger that
A) the Fed's expansionary policy will result in too small of an increase in GDP. B) the Fed's expansionary policy will result in too large of an increase in GDP. C) the Fed's contractionary policy will result in too large of a decrease in GDP. D) the Fed's contractionary policy will result in too small of a decrease in GDP.
If governments provide free healthcare services,
a. this illustrates that governments can provide healthcare more economically than private firms. b. output and consumption of other goods will not be sacrificed. c. resources with alternative uses are allocated to healthcare and there is an opportunity cost of these resources. d. the opportunity cost of the resources used to supply healthcare is zero.
Which of the following members of the European Union has NOT adopted the euro?
A) Denmark B) Estonia C) Germany D) Greece