The Return on a Futures Contract Is Calculated as

question 24

Multiple Choice

The return on a futures contract is calculated as

• A) (purchase price - selling price)/purchase price.
• B) (selling price - purchase price)/purchase price.
• C) (selling price - purchase price)/margin deposit.
• D) (purchase price - selling price)/margin deposit.

Grasp the concept of trade balances and how they relate to net capital outflow/inflow.

Recognize how changes in a country's trade surplus affect its net capital outflow.

Understand the possibility and implications of a country having domestic investment exceed national saving.

Calculate and interpret the real exchange rate between currencies.

---

Definitions:

Widgets

A generic term often used to describe an unspecified or hypothetical manufactured product.

Labor

The use of mental and physical capabilities in the creation of products and services.

Efficient

Describes a system or process that achieves maximum productivity with minimum wasted effort or expense.

Needed Resources

Essential materials, funds, or personnel required for the execution of a project or the operation of an entity.