Cliff Agrees with Sarah to Extend the Closing Date of the Purchase

question 74

Multiple Choice

Cliff agrees with Sarah to extend the closing date of the purchase of his house for one week. Sarah agrees to pay Cliff $1,000 for this extension. This extension term is called:

• A)an offer.
• B)an option
• C)a conditional term
• D)an acceptance
• E)an extension offer

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Definitions:

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in forward contracts.

Denominated

Describes a financial instrument that is specified in a particular currency.

Single-Country Funds

Investment funds that focus on securities from a specific country, offering exposure to the economic performance and growth of that nation.

Mutual Funds

Funds that gather capital from various investors to buy an assorted mix of stocks, bonds, or other financial instruments.