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

    What's a Substitute?

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

    What Does Inelastic Mean?

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

    Understanding Net Exports

    Net exports are the difference between a country’s exports and imports.
  4. Trading

    3 Factors That Drive the U.S. Dollar

    We look at three important factors that affect U.S. dollar value, and how to determine when it's the right time to buy currency.
  5. Investing

    Understanding Terms of Trade

    Terms of trade measures a country’s trading efficiency.
  6. Investing

    Are Mutual Funds Doomed?

    Decreases in mutual fund classes and the growing use of ETFs means the future of mutual funds will be anything but smooth.
  7. Investing

    The Importance of Commodity Pricing in Understanding Inflation

    Commodity prices are believed to be a leading indicator of inflation, but does it always hold?
  8. Trading

    Countries Most Affected By A Strong U.S. Dollar

    The U.S. dollar is still the most important currency in the world. It's used for trade, foreign reserves, and as a substitute for the gold standard. As the U.S. dollar continues to grow stronger, ...
Frequently Asked Questions
  1. What is the difference between overdraft and cash credit?

    The primary differences between overdraft and cash credit lie in how they are secured and whether the money is lent out of ...
  2. How are stock warrants different from stock options?

    A stock warrant is like a stock option, but there are a few key differences.
  3. How can I tell if a loan uses simple or compound interest?

    Learn the differences between simple and compound interest and how you can identify which one a loan uses.
  4. What is the difference between a non-recourse loan and a recourse loan?

    The difference between these two loans comes into play if the borrower defaults, the collateral is sold, and money is still ...
Trading Center