In Which Situation Would Economists Use the Word Equity

question 144

Multiple Choice

In which situation would economists use the word equity?

• A) Each member of society has the same income.
• B) Society is getting the most it can from its scarce resources.
• C) Those in society who have the least will receive the most.
• D) The benefits of society's resources are distributed fairly among society's members.

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Definitions:

Forward Currency

A contract to exchange a specific amount of one currency for another at a future date and at a predetermined rate, used to hedge against currency risk.

Premium

An amount paid in addition to the standard or nominal cost, often associated with insurance, bonds, or the difference above a product's nominal value.

Spot Rate

The current market price at which a particular asset, such as currency, commodity, or security can be bought or sold for immediate delivery.

Direct Quote

A currency exchange rate quoted as the domestic currency per unit of the foreign currency.