Which of the Following Is Correct About Futures Contracts

question 33

Multiple Choice

Which of the following is correct about futures contracts?

• A)Buyers of futures contracts make a profit when prices fall.
• B)Buyers of futures contracts make a profit when interest rates rise.
• C)Sellers of futures contracts make a profit when prices fall.
• D)Sellers of futures contracts make a profit when prices rise.
• E)a.and d.

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Definitions:

Markup Percent

The percentage added to the cost price of goods to cover overhead and profit, expressed as a portion of the cost.

Meat Slicing Machine

A device used in the preparation of food to slice meat thinly and consistently.

Percent Markup

The percentage added to the cost price of goods to achieve a selling price.

Fax Machine

A device that transmits scanned documents as a telephone transmission to a receiving machine producing a copy.