A Futures Contract Can Be Arranged

question 24

Multiple Choice

A futures contract can be arranged:

• A) only on financial measures such as stock market price indices
• B) only through an established stock exchange
• C) only on commodities such as agricultural products
• D) on virtually any commodity or financial measure

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to produce goods or services and achieve its objectives.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, like labor.

Wage Rate

The standard amount of pay given for work performed, typically expressed as an amount per hour or per task completed.

Total Product

The total quantity of output produced by a firm with a given amount of input.