Which of the following is not a derivative?
A) Treasury bond futures
B) Common stock
C) Swaps
D) Options
B
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Suppose that an individual consumes just two goods: Big Macs and milkshakes. In order to reach consumer equilibrium, the individual must arrange the consumption of Big Macs and milkshakes so that the:
a. marginal utility of the two goods is equal for the last dollar spent on each good. b. ratio of marginal utility to price is the same for both goods for the last dollar spent on each good. c. ratio of marginal utility of milkshakes to the marginal utility of Big Macs is 1 for the last dollar spent on each good. d. price paid for the two goods is the same.
An analysis of countries experiencing rapid inflation indicates that inflation is generally
a. caused by strong labor unions. b. the result of restrictive macroeconomic policy, which pushes up interest rates. c. caused by the impulse buying of consumers, who continue to buy the same goods even when prices rise. d. the result of rapid growth in the money supply.