If a Financial Manager Earning Interest on a Future Date

question 32

Multiple Choice

If a financial manager earning interest on a future date were to buy Futures and interest rates end up going up, the position outcome would be:

• A) Futures price falls; short earns a profit.
• B) Futures price rises; short earns a loss.
• C) Future price falls; long earns a loss.
• D) Futures price rises; long earns a profit.

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Definitions:

Welfare Systems

Governmental programs designed to provide financial or other aid to individuals in need to ensure their basic living standards.

World Population

The current global population of human beings inhabiting the planet.

8 Billion

A numerical figure representing the global human population milestone expected to be reached in the near future, highlighting concerns and discussions about sustainability, resources, and demographic pressures.

Social Forces

Various societal factors and institutions that influence individual behaviors, norms, and societal patterns.