Parties Who Have Bought a Futures Contract and Thereby Agreed

question 18

Multiple Choice

Parties who have bought a futures contract and thereby agreed to ________ (take delivery of) the bonds are said to have taken a ________ position.

• A)sell;short
• B)buy;short
• C)sell;long
• D)buy;long

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Definitions:

Gross Income

The total income received before any deductions or taxes are taken out.

Acreage Allotment

A government policy that limits the amount of land that can be used for certain agricultural crops, often aimed at controlling supply and stabilizing market prices.

Agricultural Products

Items that originate from farming and the cultivation of the land, including crops, livestock, and raw materials.

Food For Peace

A U.S. government program that provides food assistance abroad to help support economic stability and encourage peace.