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:

Taxable Income

The amount of income that is used to determine how much tax an individual or a business owes to the government.

Form 1040EZ

was a simplified tax form used by individuals with straightforward tax situations, now replaced by Form 1040.

Deduction

An expense that can be subtracted from taxable income, reducing the total amount of tax owed.

Single Taxpayer

A filing status for individuals who are unmarried and do not qualify for any other filing status on their tax returns.