To Exploit an Expected Decrease in Interest Rates, an Investor

question 24

Multiple Choice

To exploit an expected decrease in interest rates, an investor would most likely

• A) buy Treasury bond futures.
• B) take a long position in wheat futures.
• C) buy S&P 500 Index futures.
• D) take a short position in Treasury bond futures.
• E) None of the options are correct.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Cupboard Door

A movable panel used to cover the opening of a cupboard, providing access to the contents inside and often serving to protect those contents.

Cat Food

A formulated pet food specifically designed to meet the dietary needs of cats.

Classical Conditioning

An educational process where two stimuli are consistently coupled together; a reaction initially provoked by the second stimulus is ultimately triggered by just the first stimulus.