Which of the Following Statements Is True

question 201

Multiple Choice

Which of the following statements is true?

• A) Nash equilibriums exist only in games with dominant strategies.
• B) Dominant strategies do not exist in repeated games.
• C) Collusive agreements will always break down in repeated games.
• D) Games with a known ending date undermine reciprocity strategies.

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Definitions:

Fair-value Hedge

A strategy used in accounting to mitigate the risk of changes in the fair value of an asset, liability, or firm commitment through derivative contracts.

Cash-flow Hedge

A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with an asset or liability or a forecasted transaction.

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services.

Fair-value Hedge

A hedge of the exposure to changes in the fair value of an asset or liability or an unidentified firm commitment that could affect profit or loss.