The Value of a Euro Futures Contract Will Go Up

question 60

Multiple Choice

The value of a euro futures contract will go up when

• A) European interest rates go down.
• B) interest rates go down.
• C) the dollar strengthens against the euro.
• D) the dollar weakens against the euro.

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Definitions:

Private Goods

Goods that are both rivalrous and excludable, meaning consumption by one person reduces availability for others and access can be restricted.

Tragedy of the Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is contrary to the group's long-term interests.

Private Good

A product or service that is individually consumed and can be easily excluded from non-payers, making it rivalrous in consumption.

Subsidize

Financial support given by the government or another organization to reduce the cost of goods, services, or activities, often to encourage development or consumption.