Examlex
A firm with variable-rate debt that expects interest rates to rise may engage in a swap agreement to:
Utility
An economic term denoting the total satisfaction received from consuming a good or service.
Endowment Effect
A mental prejudice in which individuals attribute higher worth to items simply because they possess them.
Prospect Theory
A behavioral economic theory that describes how people make decisions between probabilistic alternatives that involve risk, where the outcomes are known.
Identical Item
A product or object that is exactly the same in every aspect as another, with no variations.
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