If You Bought a Long Contract on Financial Futures, You

question 12

Multiple Choice

If you bought a long contract on financial futures, you hope that interest rates ________.

• A) rise
• B) fall
• C) are stable
• D) fluctuate

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Definitions:

401(k) Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.

Maximum Contribution

The highest amount that can be contributed to a financial account or plan, such as a retirement account, in a given period, often with tax implications.

Roth IRA

is an individual retirement account allowing withdrawals on a tax-free basis, provided certain conditions are met, financed by after-tax dollars.

Coverdell Education Savings Account

A tax-advantaged savings account designed to pay for education expenses at both secondary and post-secondary levels.