A Short Position in a Currency Is

question 25

Multiple Choice

A short position in a currency is:

• A)a contract to buy that currency at some point in the future.
• B)a contract to sell that currency at some point in the future.
• C)an option to buy that currency at some point in the future.
• D)an option to sell that currency at some point in the future.

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Definitions:

MC = MR

A principle in economics stating that profit maximization occurs when a firm's marginal cost (MC) equals its marginal revenue (MR).

Marginal Revenue

The additional income gained from selling one more unit of a good or service.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers, typically downward-sloping.