Which of the Following Is an Agreement to Trade an Asset

question 27

Multiple Choice

Which of the following is an agreement to trade an asset on some future date,at a price that is fixed today?

• A)Margin
• B)Futures Contract
• C)Notional Contract
• D)Interest Rate Swap

---

Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Milton Friedman

An American economist and Nobel laureate who was a leading proponent of monetarism and free-market capitalism.

Serious Inflation

An extreme form of inflation characterized by rapid and uncontrollable rises in prices across the economy.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will lead to an increase in production and economic growth.