Spot Markets Are Generally Preferable to

question 98

Multiple Choice

Spot markets are generally preferable to

• A)long-term contracts.
• B)short-term contracts.
• C)vertical integration.
• D)none of the statements associated with this question are correct.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.

Lottery

A form of gambling involving the drawing of numbers at random for a prize.

Compounded Monthly

Interest on an investment or loan calculated monthly and added to the principal sum for future interest calculations.

Pay Off

To settle a debt or obligation by making a payment, either in partial settlements or in full, to clear the owed amount.