- C. On-close orders are executed at market price but are delayed until the last moments of the trading day.
- A. The others are red herrings.
- False. Its impact is mainly limited to agricultural commodities, so financial commodities will be largely unaffected.
- D. Fed controls monetary policy, as described in the other three options. Taxation is an example of fiscal policy.
- B. Tariffs decrease competition by creating barriers to imports, thereby increasing domestic demand.
- 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.
- C. When longs sell and shorts buy, there exists an exiting market and open interest declines.
- 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.
- 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
InsightsEverything you need to know - from the different types of tariffs to their effects on the local economy.
InvestingAn export is a good or service that is shipped from one country to another for sale or trade.
InsightsThe substitution effect is an economic term used to describe consumer behavior relative to price or income changes.
InvestingA substitute is a good that satisfies the same needs as another.
InsightsThe supply and demand for an inelastic good or service is not drastically affected when its price changes.
InvestingAn import is a good or service that’s brought into one country from another.
TradingA variety of factors contribute to currency depreciation, including monetary policy, inflation, demand for currency, economic growth and export prices.
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