Question
Who is/are the participants in the derivatives
market?Solution
Derivative market has 3 broad categories of participants. HEDGERS: These are investors with a present or anticipated exposure to the underlying asset which is subject to price risks. Hedgers use the derivatives markets primarily for price risk management of assets and portfolios. SPECULATORS: These are individuals who take a view on the future direction of the markets. They take a view whether prices would rise or fall in future and accordingly buy or sell futures and options to try and make a profit from the future price movements of the underlying asset. ARBITRAGEURS: They take positions in financial markets to earn riskless profits. The arbitrageurs take short and long positions in the same or different contracts at the same time to create a position which can generate a riskless profit.
If two or more than two goods are used to satisfy the same want, they are called
An inferior good is one for which an increase in income causes a(n)
Which of the following statement is correct with respect to inflation in Indian economy?
In India what is the current base year being used for the calculation of GDP?
Which of the following should be excluded while calculating Gross national Product?
Income effect states that as price of a good falls, demand rises since there is rise in
Which of the following is not a method to calculate GDP?
Which one of the following transactions will be considered as a transfer payment?
The term ‘Gross’ is being used for Gross Domestic Product (GDP) because its computation does NOT exclude which of the following factors?
What is the name given to the difference between value of output and value added?
