When the Price of Gasoline Increases Substantially, Many Consumers Will

question 10

Multiple Choice

When the price of gasoline increases substantially, many consumers will

• A) turn to fuel saving alternatives like hybrid vehicles.
• B) drive less.
• C) take public transportation.
• D) all of the above are true.

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Definitions:

Close Position

The act of selling or buying securities to offset an existing position, thereby ending the investor's exposure to that investment.

Delivery Date

In the context of futures contracts, it is the specified date on which the underlying asset must be delivered by the seller to fulfill the terms of the contract.

Sell

The act of disposing of an asset or security in exchange for cash or another financial instrument.

Margin

The amount of equity contributed by an investor as a percentage of the current market value of the securities held in a margin account.