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A Technique Used by an Auto Dealer Whereby an Offer

question 103

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A technique used by an auto dealer whereby an offer for a traded-in vehicle is much higher than its true value in order to get a buyer to accept a too high price for the vehicle being purchased is called


Definitions:

Futures Contract

A formal contract to purchase or sell a specific financial asset or commodity at an agreed-upon price on a future date.

Credit Risk

The risk of loss due to a borrower's inability to make payments on any type of debt.

Clearing Corporation

An entity that facilitates the settlement of transactions in the financial markets by ensuring the transfer of funds and securities.

Net Position

The difference between the total number of long and short positions that a trader or institution holds in a particular security, currency, or commodity.

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