Describe two useful purposes served by speculators in derivatives markets
What will be an ideal response?
First, hedgers are able to transfer risk to speculators. In derivatives markets, as in other markets, there must be two parties to a transaction. Second, studies of derivatives markets have shown that speculators provide essential liquidity.
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The IMF, because it can force nations to take loans and bail out packages, has more power than other international governmental organizations dealing with the global economy
Indicate whether the statement is true or false
State and local government spending as a share of GDP has: a. decreased from 12% in 1960 to about 8% in 2014
b. increased from 12% in 1960 to about 20% in 2014. c. remained more or less stable at 12% between 1960 and 2014. d. increased from 20% in 1960 to about 30% in 2014.