In derivative markets, trade takes place in
A) assets such as bonds or common stock that derive their value from the value of the companies which issue them.
B) assets whose rates of returns must be derived from information published in financial tables.
C) assets that derive their value from underlying assets.
D) assets which are not allowed to be traded on organized exchanges.
C
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The government of Youland increased its spending by $100 billion. However, the corresponding change in output was much smaller than that predicted by the government expenditure multiplier. This occurs due to ________
A) crowding out B) a liquidity crisis C) the internalization of an externality D) quantitative easing
If the government imposes an effective ________, a deadweight loss ________
A) price floor; does not occur B) price ceiling; does not occur C) price ceiling; occurs D) price support; does not occur E) Both answers C and D are correct.