Currency Futures Contracts Differ from Forward Contracts in That They

question 57

Multiple Choice

Currency futures contracts differ from forward contracts in that they ​

• A)are an obligation.
• B)are not an obligation.
• C)are standardized.
• D)can specify any amount and maturity date.

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Definitions:

Long-run Cost Curve

A graphical representation showing the minimum cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

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Electrical devices used to blow dry hair by emitting warm air.

Economies of Scope

Cost advantages that arise from a firm or company expanding its product line or markets, exploiting shared resources or technologies.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the cost per unit as output increases.