A futures contract specifies

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Reference no: EM132064770

1. A Futures Contract Specifies:

I. The exact commodity to be purchased or delivered.

II. The exact quantity to be purchased or delivered.

III. The delivery price.

IV. The month of delivery

Please choose the correct answer below

A. II and III only

B. I, II and IV only

C. I and III only

D. I and IV only

2. Suppose that the natural rate of interest is 2 percent and the current rate of inflation is 4 percent. If the inflation gap is 2 percent and the rate of real GDP growth is 3 percent above its potential, the FOMC’s target fed-funds rate is:

Reference no: EM132064770

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