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Which of the Following Is an Example of an Externality

question 135

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Which of the following is an example of an externality?


Definitions:

Forward Contract

A personalized agreement between two entities to purchase or sell a specific asset at a predetermined price on a later date.

Thermal Compressors

Devices that use heat energy to compress a gas, often used in heat pump and refrigeration systems.

Spot Rate

The current market price at which a currency can be bought or sold for immediate delivery.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, often used in foreign exchange and interest rate markets.

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