If You Were Bearish on the Near-Term Outlook for the Stock

question 97

True/False

If you were bearish on the near-term outlook for the stock market but did not want to sell your portfolio, you could hedge against the decline by selling stock index futures.

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Definitions:

Gold Standard

An economic system where a fixed amount of gold serves as the standard unit of currency.

Branch Banking

Refers to a banking system where a single bank operates multiple outlets or branches, providing a range of banking services in different locations.

Banking Laws

Legislation that governs the operation of banks and other financial institutions, including regulations on lending, deposit taking, and investments.

State Charters

Legal authorizations granted by U.S. states that allow specific institutions, typically banks or corporations, to operate within those states.