Which of the Following Is a Final Good

question 246

Multiple Choice

Which of the following is a final good?

• A) flour used by the bakery to bake cookies
• B) flour purchased at the store to bake cookies
• C) the memory chips in your new smart phone
• D) a share of IBM stock

---

Definitions:

Forward Trade

A non-standardized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.

Spot Exchange Rate

The current price for exchanging one currency for another for immediate delivery, reflecting the value of one currency in terms of another at a specific moment in time.

Forward Trade

A financial contract agreement to buy or sell assets at a specified future date and price, used primarily in commodity and currency markets.

Forward Exchange Rate

The agreed upon exchange rate for a currency pair to be traded at a future date, used in hedging and speculation.