If a Financial Manager Earning Interest on a Future Date

question 32

Multiple Choice

If a financial manager earning interest on a future date were to buy Futures and interest rates end up going up, the position outcome would be:

• A) Futures price falls; short earns a profit.
• B) Futures price rises; short earns a loss.
• C) Future price falls; long earns a loss.
• D) Futures price rises; long earns a profit.

Describe the importance and implications of behavioral consistency.

Analyze the role of values in the person-situation debate.

Understand the significance of the personality coefficient and its implications.

Critically evaluate research evidence in the context of the person-situation debate.

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Definitions:

Tectonically Inactive

Refers to regions of the Earth's crust that are not currently experiencing significant tectonic movements, earthquakes, or volcanic activity.

Billion Years

A time scale used to describe events or processes that occur over extremely long periods, typically in the context of the age of the Earth or the universe, equivalent to 10^9 years.

Slope Failure

The movement and failure of slope material caused by gravity, water saturation, or other destabilizing factors.

Crater Walls

The steep sides that define the rim of a crater, often formed by explosions, impacts, or volcanic activity.