Questions from Macroeconomics


Q: Why might a person buy a futures contract?

Why might a person buy a futures contract?

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Q: How does inflation targeting work?

How does inflation targeting work?

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Q: Why might a person buy a call option?

Why might a person buy a call option?

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Q: “The currency speculator who sells futures contracts assumes the risk that

“The currency speculator who sells futures contracts assumes the risk that someone else doesn’t want to assume.” Do you agree or disagree? Explain your answer.

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Q: If you thought that the share price of a stock was going

If you thought that the share price of a stock was going to fall, would you buy a call option or a put option?

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Q: What does it mean if the Dow Jones Industrial Average rises by

What does it mean if the Dow Jones Industrial Average rises by, say, 100 points in a day?

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Q: What does the phrase “to buy the market” mean?

What does the phrase “to buy the market” mean?

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Q: What does it mean if someone invests in a mutual fund?

What does it mean if someone invests in a mutual fund? In a stock market fund.

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Q: If the share price of each of 500 stocks rises on Monday

If the share price of each of 500 stocks rises on Monday does everyone in the stock market believe that stocks are headed even higher? (No one will buy a stock if he or she thinks share prices are hea...

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Q: Which of the two stocks has a bigger gap between its close

Which of the two stocks has a bigger gap between its close price and net earnings per share, Stock A with a P/E ratio of 15 or Stock B with a P/E ratio of 44? Explain your answer.

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