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:

Fahrenheit Scale

A temperature scale where the freezing and boiling points of water are 32 degrees and 212 degrees, respectively.

Temperature

The measure of the hotness or coldness of a body or environment, indicating the degree of heat energy present.

Ordinal Data

A type of categorical data with a clear ordering or ranking among the categories, but without a precise mathematical difference between those rankings.

Fixed Units of Measurement

This refers to using consistent and unchanging units when measuring variables or quantities in research, experiments, or any form of data collection.