Corporations Increasingly Collect and Analyze Data on Their Customers

question 44

Multiple Choice

Corporations increasingly collect and analyze data on their customers. This is known as

• A)profit analysis.
• B)big data.
• C)cost reduction.
• D)automated analysis.

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Definitions:

Interest Rate Cap

A financial derivative contract that limits the maximum interest rate a borrower has to pay on a variable-rate loan.

Futures Contracts

Standardized agreements to buy or sell a commodity or financial asset at a future date and price.

Hedge

An investment strategy used to reduce risk by taking positions that offset potential losses in other investments.

Strike Price

The strike price is the price at which the holder of an option contract has the right to buy (for a call option) or sell (for a put option) the underlying asset or security upon exercise of the option.