If a Financial Manager with an Interest Liability on a Future

question 44

Multiple Choice

If a financial manager with an interest liability on a future date were to sell Futures and interest rates end up going up, the position outcome would be:

• A) Futures price falls; short earns a profit.
• B) Futures price rises; short earns a loss.
• C) Future price falls; long earns a loss.
• D) Futures price rises; long earns a profit.

---

Definitions:

Paralanguage

The non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, loudness, and pitch.

Nonverbal

Communication without using spoken language, including gestures, facial expressions, body language, and other visual cues.

Transactional Model

A communication framework suggesting that interactions are simultaneous and reciprocal among communicators.

Stimulated

The state of being aroused, activated, or energized by external or internal factors.