Which of the following is a property of a forward contract?
a. In a forward contract cash is traded for immediate delivery.
b. The buyer of a forward contract is "short" while the seller of the contract is "long".
c. In a forward contract, the seller must own the commodity which is being traded.
d. The value of future delivery depends on the market price of the commodity.
D
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The market prices of existing bonds are
A) inversely related to the interest rate. B) stated in terms of the interest rate. C) not related to the interest rate. D) directly related to the interest rate.
When the English pound appreciated against a colonial currency, this signaled
(a) that colonists needed more colonial currency to buy an English pound. (b) that colonists needed less colonial currency to buy an English pound. (c) that colonists needed more colonial and Spanish currency to buy an English pound. (d) nothing of economic importance.