To Exploit an Expected Decrease in Interest Rates,an Investor Would

question 51

Multiple Choice

To exploit an expected decrease in interest rates,an investor would most likely

• A)buy Treasury bond futures.
• B)take a long position in wheat futures.
• C)buy S&P 500 index futures.
• D)take a short position in Treasury bond futures.
• E)none of the above.

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Definitions:

Posting Reference Columns

Columns in a journal entry that help in transferring information to, and tracking from, the corresponding ledger accounts for audit trail purposes.

Ledger

A comprehensive collection of a company’s final financial accounts, including assets, liabilities, equity, revenue, and expenses.

Journal

A detailed record where all financial transactions of a business are initially recorded, listed in chronological order.

Chart of Accounts

A systematic list of accounts that a company uses for the organization of its financial transactions and to prepare financial statements.