A foreign exchange option is: ·
a. the right to engage in buying or selling on the spot market.
b. the right to purchase or sell foreign currency at a specified price on a specified date in the future.
c. when the price of foreign currency exceeds the spot rate.
d. when a speculator must decide whether to move into the market.
Ans: b. the right to purchase or sell foreign currency at a specified price on a specified date in the future.
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Human capital refers to:
A. the skills and knowledge that enable a worker to be productive. B. machinery used by labor in production. C. the accumulated financial wealth of households. D. physical capital owned by households rather than businesses.
Refer to the graphs below for a purely competitive market in the short run. The graphs suggest that in the long run, assuming no changes in the given information, the market:
A. Supply curve will shift to the left
B. Supply curve will shift to the right
C. Demand curve will shift to the left
D. Demand curve will shift to the right