A. forward contracts occur in a specific locations-for example, the Chicago Mercantile Exchange
B. futures contracts have negotiable delivery dates
C. forward contracts can be tailored in amount and delivery date to the need of importers of exporters
D. futures contracts involve no brokerage fees or other transactions costs
Related Mcqs:
- Even though explicit contracts may lead to layoffs during recessions explicit contracts may still be efficient because such contracts ?
A. minimize negotiation costs
B. minimize unemployment effects
C. guarantee that only the least productive workers will be laid off.
D. will equitable spread the layoffs among junior and senior workers - If export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency a depreciation of the dollar during the currency contract period ?
A. should increase the dollar value of exports
B. should not have any effect on the dollar value of U.S imports
C. must increase the balance of trade
D. All of the above - In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?
A. kickback
B. Commission
C. Bribe
D. Graft - Suppose the price level falls but because of fixed nominal wage contracts the real wage rises and firms cut back on production This is a demonstration of the ?
A. sticky-wage theory of the short-run aggregate supply curve
B. classical dichotomy theory of the short-run aggregate supply curve
C. misperceptions theory of the short-run aggregate supply curve
D. sticky-price theory of the short run aggregate supply curve - ________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?
A. Optional-product pricing
B. Captive-product pricing
C. Product line pricing
D. By-product pricing - The franc is said to be selling at a _______ if the spot dollar price is $0.48 and the nine-month forward rate is $0.42 ?
A. forward discount
B. forward premium
C. forward spread
D. None of these - Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro?
A. sell; appreciation
B. sell; depreciation
C. buy; depreciation
D. buy; appreciation - The In suppliers are most likely to get nervous and feel pressure to put their best foot forward in which of the following types of buying situations ?
A. modified rebuy
B. new task buying
C. straight rebuy
D. indirect rebuy - The difference between bid (buying) rates and ask (selling) rates is called the ?
A. profit
B. arbitrage
C. spread
D. forward transaction - The difference between a country’s balance of payments and its balance of international indebtedness?
A. is equal to official reserve transactions
B. occurs because of foreign exchange fluctuations
C. reflects statistical discrepancies
D. reflects the difference between flow and stock concepts
