Which One of the Following Is the Definition of the Term

question 85

Multiple Choice

Which one of the following is the definition of the term "basis"?

• A)initial cost of purchasing a futures contract
• B)future price of a transaction that is agreed upon today
• C)difference between the cash and futures price of a commodity
• D)the expected future price of a commodity based on the current spot price
• E)the expected spot price of a commodity based on the future price

---

Definitions:

Wages

Wages are the compensation paid to employees for their labor, often calculated on an hourly, daily, or piecewise basis.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, opposite to normal goods.

Quantity Demanded

The total amount of a good or service consumers are willing and able to purchase at a given price level.

Increase in Price

A situation where the cost of goods or services rises, potentially due to factors like higher demand, production costs, or inflation.