A Financial Instrument on Which a Futures Contract Is Based

question 44

Multiple Choice

A financial instrument on which a futures contract is based is called which one of the following?

• A)hedged security
• B)short position
• C)long position
• D)speculative asset
• E)underlying asset

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Definitions:

Rummage Sale

A sale event, often organized by a community or organization, where used goods are sold, typically to raise funds.

Current GDP

The market value of all final goods and services produced within a country in a given period, measured without adjusting for inflation.

Inventory

The sum of all goods and materials held by a company in stock, including raw materials, work-in-progress, and finished goods.

Investment Expenditures

Spending on capital goods by firms and households which will be used for future production of goods and services.