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Author Question: Why may some investors prefer forward contracts to futures? What will be an ideal ... (Read 116 times)

mp14

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on: Jun 30, 2018
Why may some investors prefer forward contracts to futures?
 
  What will be an ideal response?

Question 2

Using economic efficiency as the standard, most economic models imply that ________ when trying to reduce the debt.
 
  A) increasing taxes is preferable to reducing government expenditure
  B) reducing government expenditure is preferable to increasing taxes
  C) increasing taxes is equally efficient as reducing government expenditure
  D) reducing government expenditure is no more effective than increasing taxes


ebe

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Forward contracts are more flexible than futures contracts.

Answer to Question 2

B


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