Major Categories of Market-Based Instruments Include

question 3

Multiple Choice

Major categories of market-based instruments include

• A) pollution charges
• B) subsidies
• C) deposit/refund systems
• D) pollution permit trading systems
• E) all of the above

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Definitions:

Fair Value Hedge

A hedging strategy used to mitigate risk by matching the fair value of an asset or liability through a financial derivative.

Merchandise Inventory

Goods held by a business for the purpose of sale to customers in the ordinary course of business.

Forward Contract

A non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today.

Ordering Merchandise

The process of purchasing goods for sale, typically from suppliers or manufacturers, by a retail or wholesale business.