You Currently Have a Long Position in the 3-Month Futures

question 61

Multiple Choice

You currently have a long position in the 3-month futures market. Which one of the following would be a reverse trade to this position?

• A)short spot
• B)long spot
• C)short 3-month futures
• D)long 3-month futures
• E)short 6-month futures

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Definitions:

Recession

A significant decline in economic activity across the economy, lasting longer than a few months, characterized by falling GDP, income, employment, manufacturing, and retail sales.

Liberal Economists

Economists who advocate for open markets, free trade, and minimal government intervention in the economy.

Spending Increases

A rise in the amount of money spent by consumers, businesses, or the government on goods and services.

Federal Budget Deficit

is the financial shortfall when the government's expenditures exceed its revenues within a given fiscal year.