The Essential Feature of a ________ Is That It Immediately

question 9

Multiple Choice

The essential feature of a ________ is that it immediately fixes the rate at which a specified amount of one currency is to be delivered in exchange for a specific amount of another at a future date.

• A)forward contract
• B)spot contract
• C)money contract
• D)bid contract

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Definitions:

Recessionary Gap

The difference between the actual level of GDP and the potential GDP that could be produced if all resources were fully employed, indicating an economy is not reaching its full output potential.

Fiscal Policy

Government decisions on taxation and spending to influence the economy, aiming to manipulate demand, inflation, and economic activity.

Monetary Policy

A central bank's management of money supply and interest rates to achieve macroeconomic objectives like controlling inflation, consumption, growth, and liquidity.

Automatic Stabilizers

Strategies and programs intended to stabilize variations in a country's economic activities without direct involvement from government officials or policy makers.