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Assume the Futures Price of a Commodity Is Equal to the Future

question 75

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Assume the futures price of a commodity is equal to the future value of the cash price, calculated at the risk-free rate. Given this, which one of the following terms applies to the market for this commodity?


Definitions:

Zero Population Growth

A demographic balance where the number of people in a specified population neither grows nor declines, due to the birth rate equaling the death rate.

Demographic Transition Model

A concept explaining how countries or regions experience a decline in both birth and death rates when transitioning from a pre-industrial stage to an industrial economic system.

Postindustrial Stage

A phase in societal development marked by a shift from a manufacturing-based economy to a service-oriented economy, often seeing a decline in traditional industries.

Transitional Stage

A phase in development or progress where significant changes occur, leading from one state or condition to another.

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