1. E.
  2. C. On-close orders are executed at market price but are delayed until the last moments of the trading day.
  3. A. The others are red herrings.
  4. False. Its impact is mainly limited to agricultural commodities, so financial commodities will be largely unaffected.
  5. D. Fed controls monetary policy, as described in the other three options. Taxation is an example of fiscal policy.
  6. B. Tariffs decrease competition by creating barriers to imports, thereby increasing domestic demand.
  7. B. Consumers may substitute the consumption of one good for another in the face of rising prices (e.g. beef v. pork). This observation is a part of fundamental analysis. The other three items are examples of analytical tools of technical analysis.
  8. C. When longs sell and shorts buy, there exists an exiting market and open interest declines.
  9. B. A rising dollar is stronger relative to the currency of the importing country. More of that currency would be needed to pay for imports and can make them too expensive. This could result in the exporting country exporting fewer goods resulting in an increase in supply.
  10. B. When demand for a product or good is inelastic, price has no impact on that demand. Ergo, the consumer would not seek out a less expensive substitution.





Short Hedging and Long Hedging

Related Articles
  1. Investing

    Growth and Politics In Exports

    An export is a good or service that is shipped from one country to another for sale or trade.
  2. Insights

    The Basics Of Tariffs And Trade Barriers

    Everything you need to know - from the different types of tariffs to their effects on the local economy.
  3. Insights

    Understanding the Substitution Effect

    The substitution effect is an economic term used to describe consumer behavior relative to price or income changes.
  4. Investing

    What's a Substitute?

    A substitute is a good that satisfies the same needs as another.
  5. Insights

    What Does Inelastic Mean?

    The supply and demand for an inelastic good or service is not drastically affected when its price changes.
  6. Investing

    Understanding Imports

    An import is a good or service that’s brought into one country from another.
  7. Trading

    Top Economic Factors That Depreciate The $US

    A variety of factors contribute to currency depreciation, including monetary policy, inflation, demand for currency, economic growth and export prices.
  8. Personal Finance

    Should You Be A Financial Planner?

    Is a financial planning career right for you? Take this short quiz to find out. You might learn something about yourself.
  9. Insights

    4 Factors That Shape Market Trends

    Trends allow traders and investors to capture profits. Find out what's behind them.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center