An Agreement Between a Business and a Large Money Center

question 67

Multiple Choice

An agreement between a business and a large money center bank to sell 10 million dollars of T-Bills in sixty days is called a

• A) a call option.
• B) a forward contract.
• C) a put option.
• D) a long futures position.

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Definitions:

Sociometer

A hypothetical internal gauge or mechanism within individuals that monitors the level of social acceptance or rejection they feel, influencing self-esteem.

Group Membership

The state or fact of being a part of a group, which entails certain rights, responsibilities, and identities associated with being a member of that group.

Sense of Self

An individual's perception and understanding of their own identity and personality traits.

Social Identity Theory

A psychological theory proposing that a person’s sense of who they are is based on their group membership(s), which contributes to their self-esteem and behavior towards in-group and out-group members.