The Dollar Price of a Good Relative to the Average

question 52

Multiple Choice

The dollar price of a good relative to the average dollar price of all other goods is the

• A)market price
• B)equilibrium price
• C)nominal price
• D)real price

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Definitions:

Actual Delivery

The physical exchange of an asset between seller and buyer or the completion of a transaction, as opposed to a contract being settled by other means.

Interest Rate Futures

Financial derivatives contracts that speculate on the future level of interest rates, allowing investors to hedge or speculate on changes in interest rates.

Eurodollars

U.S. dollar-denominated deposits held in banks outside the United States, not under the jurisdiction of the Federal Reserve, used in international transactions.

Euroyen

Yen-denominated deposits held in banks outside Japan, or bonds issued in the Tokyo market by non-Japanese entities, typically denominated in yen.