With Profit-Oriented Approaches to Pricing,a Price Setter May Choose to Balance

question 120

Multiple Choice

With profit-oriented approaches to pricing,a price setter may choose to balance both __________ and __________ to set price.

• A) revenues; profit
• B) tangible goods; services
• C) costs; revenues
• D) demand; supply
• E) cost; demand

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Definitions:

Maturity

The date on which the principal amount of a bond, loan, or other financial instrument becomes due and is to be paid in full.

Marking To Market

The process of updating the value of a financial instrument to reflect its current market value, rather than its purchase price or book value.

Daily Settlement

The process of reconciling buy and sell positions in futures and options markets at the end of each trading day based on the closing market prices.

Futures Positions

Futures positions are commitments to buy or sell a specified amount of a commodity, currency, or financial instrument at a specified price on a set future date.