Forward Transactions

question 31

Multiple Choice

Forward transactions

• A)allow savers and borrowers to conduct a transaction now and settle in the future.
• B)allow savers and borrowers to postpone a transaction from now to the future.
• C)always involve increased risk compared with spot transactions.
• D)may not be conducted on organized exchanges.

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Definitions:

Welfare State

A system in which the government undertakes to protect the health and well-being of its citizens, especially those in financial or social need, by means of grants, pensions, and other benefits.

Trickle-Down Economics

An economic theory suggesting that benefits given to the wealthy or businesses will eventually trickle down to everyone in the form of investments and jobs.

Tax Revenues

The income that is gained by governments through taxation, which is used to fund public expenditures.

Bowers V. Hardwick

A controversial Supreme Court case in 1986 that upheld the constitutionality of a Georgia sodomy law, later overturned by Lawrence v. Texas in 2003.