Which of the following is NOT a true statement?

• Prices of commodities are determined by the motives of buyers and sellers

• If buyers are scarce, seller will likely lower the price

• If sellers are scarce, buyers will likely buy at a lower price

• Sellers look for the highest price

What happens when a product is produced in larger quantities than it is demanded?

• surplus

• shortage

• equilibrium

• overage

___________ is met when the quantity of a product matches the demand of the product.

• surplus

• shortage

• equilibrium

• overage

Which of the following are contractual agreements made between two parties through a regulated futures exchange?

• futures

• actuals

• retails

• surpluses

______________ are traders with the goal of profiting on future price moves.

• speculator

• hedger

• risker

• profiteers

What is the largest futures exchange in the United States by volume?

• Kansas City Board of Trade

• Chicago Mercantile Exchange

• Chicago Board of Trade

• New York Board of Trade

___________ is the examination of the forces of supply and demand in a commodity market.

• technical analysis

• floor analysis

• fundamental analysis

• trader analysis

What percent of production and marketing contracts govern the value of U.S. agricultural production?

• 26%

• 34%

• 36%

• 46%

Which of the following is NOT a benefit of contracts to agriculture producers?

• reduce income risk of price and production variability

• ensure market access

• provide higher returns for providing various farm products

• increase income risks of price and production variability

A risker are typically producers and consumers who buy and sell futures contracts seeking to lock in future prices for commodities.

• true

• false