Which of the Following Is Not an Example of Derived

question 104

Multiple Choice

Which of the following is not an example of derived demand?

• A)As more high school graduates go on to college, more professors are hired.
• B)As consumers buy more computers, they demand more powerful computers as they become available.
• C)As people let their hair grow longer, fewer people become barbers.
• D)As people buy more tennis shoes instead of sandals, they buy more shoe laces.
• E)Increased demand for overnight delivery speeds up orders for new delivery trucks.

Comprehend the psychodynamic perspective on personality, including its terminology and concepts.

Understand the concepts of futures contracts and how profits are calculated in futures trading.

Calculate the total value of futures contracts based on market data.

Compute the cost of purchasing options and futures contracts.

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Definitions:

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes associated with the activity.

Covered Interest Arbitrage

A strategy that involves converting currency through the spot exchange market, investing in foreign interest bearing securities, and hedging exchange risk through the forward market to earn riskless profit.

Forward Rate

The predicted interest rate for a loan or investment for a specific period in the future, differing from current rates.

Nominal Risk-Free Rate

The rate of return on an investment with no risk of financial loss, not taking into account inflation.