How are daily gains and losses settled in the futures market?
A. Gains and losses are not realized until the party either accepts delivery or delivers the product at the end of the contract.
B. Through withdrawals and deposits in the owners' personal savings account.
C. Through withdrawals and deposits in the margin account.
D. Through direct cash transfers between the buyer and a seller of each contract.
Ans: C. Through withdrawals and deposits in the margin account.
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The short-run effects on the interest rate are
a. shown equally well using either liquidity preference theory or classical theory. b. best shown using classical theory. c. best shown using liquidity preference theory. d. not shown well by either liquidity preference theory or classical theory.
Suppose a consumer's nominal income is $50,000 and the cost-of-living index is 1.3. The consumer's real income is:
A. $50,000. B. $65,000. C. $57,500. D. $38,462