Interest Rate Futures Contracts Are Actively Traded on the

question 33

Multiple Choice

Interest rate futures contracts are actively traded on the

• A)Eurodollars.
• B)Euroyen.
• C)Sterling.
• D)A and B.
• E)all of the above.

---

Definitions:

Elasticity Value

A measure in economics indicating how the quantity demanded or supplied of a good responds to changes in price or income.

Inelastic Demand

A situation in which the quantity demanded of a good or service changes by a relatively small amount in response to a change in its price.

Price Elasticity

An indicator of the extent to which the demand for a product is affected by variations in its cost.

Midpoint Formula

A method for calculating the price elasticity of demand or supply by averaging the starting and ending prices and quantities to estimate the percentage change.