Which One of the Following Statements Regarding "Basis" Is Not

question 28

Multiple Choice

Which one of the following statements regarding "basis" is not true?

• A) the basis is the difference between the futures price and the spot price.
• B) the basis risk is borne by the hedger.
• C) a short hedger suffers losses when the basis decreases.
• D) the basis increases when the futures price increases by more than the spot price.
• E) none of these.

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Definitions:

Stress

Stress is the body's reaction to any change that requires an adjustment or response, which can come from any situation or thought that makes a person feel frustrated, angry, nervous, or anxious.

Physical Health

The overall condition of an individual's body, including the absence of disease and fitness level.

Psychological Health

Refers to the emotional and mental well-being state where an individual is able to use their cognitive and emotional capabilities to function in society and meet the ordinary demands of everyday life.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, leading to delusions, hallucinations, and disorganized thinking.