If a Lender Agrees to Lend a Firm $1,000,000 After

question 39

Multiple Choice

If a lender agrees to lend a firm $1,000,000 after six months at the going rate, that individual can hedge against the loss from a decline in interest rates by

• A) ​buying a financial futures contract
• B) ​selling a financial futures contract
• C) ​taking a short position
• D) ​making the loan now

---

Definitions:

Postconventional Stage

A level of moral development where individuals make ethical decisions based on universal principles and the common good.

Approval

The act of accepting or endorsing something as satisfactory or in accordance with one's standards or expectations.

Kohlberg

Refers to Lawrence Kohlberg, a psychologist known for his theory of moral development, which proposes stages through which individuals progress in their moral reasoning.

Product Placement

A marketing strategy where branded goods or services are placed in a context usually devoid of ads, such as movies, TV shows, or news programs.