The Pure Expectations Hypothesis Suggests Futures Prices Serve as Unbiased

question 20

True/False

The pure expectations hypothesis suggests futures prices serve as unbiased forecasts of future spot prices.

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Definitions:

Permanent Settlements

Communities where people establish long-term residences, marking a shift from nomadic lifestyles to settled agriculture and urban development.

Crystallization

In the social sciences, it refers to the process by which vague opinions or beliefs become solidified into clear and distinct ideas or ideologies.

Industrial Societies

Use machines and fuel to greatly increase the supply and dependability of food and finished goods. The first such societies emerged about 225 years ago in Great Britain. Productivity, the division of labor, and average settlement size increased substantially in industrial societies compared with agricultural societies. While social inequality was substantial during early industrialism, it declined as the industrial system matured.

Social Inequality

The presence of unequal chances and benefits for various social roles or statuses within a community or society.