Term the covering of a short position by purchasing a long contract, usually resulting from the short of a commodity ?

Related Mcqs:

1. Which statistical factor is used to convert current currency purchasing power into inflation adjusted purchasing power ?

   A. Deflector
   B. Purchasing power parity
   C. Inflator
   D. Deflation

2. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

   A. At their lowest points
   B. When they are declining
   C. When they are increasing
   D. When marginal revenue is zero

3. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

4. The reduction or covering of foreign exchange risk is called ?

   A. hedging
   B. speculation
   C. intervention
   D. arbitrage

5. What is called the minimum price of a commodity that is fixed by government in order to save the interests of producer of raw materials ?

   A. Floor price
   B. Fixed price
   C. Bid price
   D. Basic price

6. Minimum price of a commodity fixed by government to save the interest of producer of raw materials is called ?

   A. Floor price
   B. Fixed price
   C. Bid Price
   D. Basic Price

7. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium economic theory suggests that the nation’s balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. increase in the money demand
   B. decrease in the money demand
   C. increase in the money demand
   D. None of the above

8. Starting from a position where the nation’s money demand equals the money supply and its balance of payments is in equilibrium its balance of payments would move into a surplus position if there occurred in the nation a (an) ?

   A. decrease in the money supply
   B. increase in the money supply
   C. decrease in the money demand
   D. None of the above

9. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

10. Export primary commodity concentration ratios are ?

    A. commodity exports as a percentage of GDP per capita of exporting country divided by importing country
    B. export earnings as a ratio of population
    C. total merchandise export divided by Gross National Income
    D. food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports