If a Person Deviates from the Norms of a Group

question 205

Multiple Choice

If a person deviates from the norms of a group, the first thing the group is likely to do is __________.

• A) exclude the person
• B) assign him to a position of lower status
• C) try to persuade him to conform
• D) say negative things to the deviant

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Definitions:

Forward Contract

A bespoke arrangement between two parties for acquiring or disposing of an asset at a designated price on an upcoming date.

Hedge

An investment made to reduce the risk of adverse price movements in an asset.

Speculative Forward Contract

A financial derivative used to speculate on the future price of an asset, involving an agreement to buy or sell the asset at a future date for a price determined today.

Fair Value Hedge

A risk management technique that uses financial instruments to mitigate the risk associated with changes in the fair value of an asset or liability.