Financial Futures Are Available to Protect Against All of the Following

question 103

Multiple Choice

Financial futures are available to protect against all of the following except:

• A) interest rate risk.
• B) level of equity prices.
• C) currency swap risk.
• D)exchange rate risk.

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a certain input while holding other inputs constant.

Picture Framer

A professional or business specialized in enclosing pictures, photographs, or artwork in frames.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, will begin to decrease, assuming all other variables are constant.

Short Run

A time period in economics during which at least one input is fixed while others are variable.