Forward contracts are of limited usefulness to financial institutions because
A) of default risk.
B) it is impossible to hedge risk.
C) they are relatively inflexible.
D) of interest-rate risk.
A
Economics
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The above figure shows Bob's utility function, which is
A) concave. B) convex. C) linear. D) L-shaped.
Economics
What is an externality? How do positive and negative externalities differ in their effects? How can government action correct positive and negative externalities?
What will be an ideal response?
Economics