A Forward Contract Hedge Is Very Similar to a Futures

question 69

Multiple Choice

A forward contract hedge is very similar to a futures contract hedge, except that ____ contracts are commonly used for ____ transactions.

• A)forward; small
• B)futures; large
• C)forward; large
• D)none of the above

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Definitions:

Hunting And Gathering

An ancient subsistence strategy involving the hunting of animals and foraging of plant life, oftentimes practiced by nomadic societies.

Foraging Societies

Those in which people live by searching for wild plants and hunting wild animals. Such societies predominated until about 10,000 years ago. Inequality, the division of labor, productivity, and settlement size are very low in such societies.

Service Sector

A segment of the economy that involves providing services rather than producing goods, including industries like banking, healthcare, and education.

Class Inequality

The disparity in access to resources, opportunities, and rights among different social classes.