An Investor Would Want to ________ to Exploit an Expected

question 84

Multiple Choice

An investor would want to ________ to exploit an expected fall in interest rates.

• A) sell S&P 500 Index futures
• B) sell Treasury-bond futures
• C) buy Treasury-bond futures
• D) buy wheat futures

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Definitions:

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing U.S. monetary policy and regulating banks.

George Bush

Refers to either the 41st President of the United States, George H. W. Bush (1989-1993), or his son, the 43rd President, George W. Bush (2001-2009).

Recession

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, income, employment, manufacturing, and retail sales.

Excess Reserves

The amount of reserves that a bank holds beyond the minimum required by regulation or central bank policy.