If You Look at the Financial Page Listings for Futures

question 82

Multiple Choice

If you look at the financial page listings for futures contracts and find that futures prices on Treasury bonds are falling over a particular time period, futures market investors must expect that

• A)Treasury bond prices will be higher in the future.
• B)Treasury bond yields will be higher in the future.
• C)Treasury bond yields will be lower in the future.
• D)futures prices will rise again at the end of the period.

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Definitions:

Manufacturing Overhead

Indirect factory-related costs that are incurred when producing a product, including costs associated with maintenance, utilities, and quality control.

Fixed Selling Expenses

Fixed selling expenses are those costs associated with selling a product that do not change with the level of production or sales, such as salary of sales staff and rent for office space.

Administrative Expenses

Administrative expenses are the costs associated with the general administration of a business, such as salaries of office staff, utilities, and rent.

Schedule of Expected Cash Collections

A detailed projection of the amounts and timing of cash inflows from receivables anticipated to be collected.