An Agreement Between Two Parties to Exchange a Specified Amount

question 2

Multiple Choice

An agreement between two parties to exchange a specified amount of a commodity,security,or foreign currency at a specified date in the future with the price or exchange rate being set now is referred to as a(n)

• A) interest rate swap.
• B) forward contract.
• C) futures contract.
• D) option.

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Definitions:

Nitrogen Gas

A diatomic, colorless, odorless, and tasteless gas that makes up about 78% of the Earth's atmosphere.

Food Chain

A linear sequence of organisms through which nutrients and energy pass as one organism eats another.

Top Predator

A top predator, often situated at the apex of a food chain, is an organism that is not preyed upon by any other in its natural environment.

Stored Energy

energy in a system or object that is not being used and can be released to do work; also known as potential energy.