Search Header Logo

RM022 Quiz

Authored by Cecile Menees

Business

12th Grade

RM022 Quiz
AI

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

    Content View

    Student View

24 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • Ungraded

What two basic risk management questions does a producer need to answer before deciding on how to manage price risk?

Evaluate responses using AI:

OFF

Answer explanation

What objective do I want to accomplish?, How can I reach that objective?

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these market tools is the least flexible but the easiest to use?

Cash forward contract

Hedge to arrive contract

Hedging with a short futures contract

Selective hedging

Spot cash sale

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these market tools can be used at any time but comes with risks that may force the producer to pay a penalty or buy high-priced grain to fill out the contract?

Cash forward contract

Hedge to arrive contract

Hedging with a short futures contract

Selective hedging

Spot cash sale

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these market tools is the most flexible when you want to set a specific price level?

Cash forward contract

Hedge to arrive contract

Hedging with a short futures contract

Selective hedging

Spot cash sale

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these market tools involves placing hedges only when the market offers specific price objectives and may be defined as a "speculative" transaction?

Cash forward contract

Hedge to arrive contract

Hedging with a short futures contract

Selective hedging

Spot cash sale

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these market tools sets the price in advance but leaves the basis open until a time the seller chooses?

Cash forward contract

Hedge to arrive contract

Hedging with a short futures contract

Selective hedging

Spot cash sale

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Some grain buyers can offer minimum price contracts because they:

Trade in futures markets

Buy put options

Are willing to take risk

Sell options

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?