A Price of a Futures Contract for U

question 42

Multiple Choice

A price of a futures contract for U.S. Treasury bonds listed as "111-15" is measured in:

• A) 32nds.
• B) 12ths.
• C) 4ths.
• D) dollars; it stands for $111.15 but a dash is used instead of a period.

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Definitions:

Trade Barriers

Government-imposed regulations such as tariffs, quotas, and embargoes that restrict the free flow of goods and services between countries.

Efficiency Loss

Losses in economic efficiency that occur when equilibrium for a good or a service is not achieved or is not achievable.

Free Trade

An economic policy that allows for unrestricted import and export of goods and services between countries, devoid of tariffs, quotas, or other trade barriers.

Import Quotas

Limits set by a government on the amount or value of goods that can be imported into a country, usually meant to protect domestic industries.