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Alternative Finance - Test

Authored by Carlos Martinez

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12th Grade

Used 1+ times

Alternative Finance - Test
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39 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

What is a commodity?

A finished product used in commerce
A raw material used to manufacture goods
A type of currency used in trading
A type of investment

2.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

What is the purpose of buying futures contracts for farmers and manufacturers?

To protect against price fluctuations
To increase profits
To control the commodity market
To secure government subsidies

3.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

What do financial traders aim to profit off in commodity markets?

Price fluctuations
Government regulations
Consumer demand
Market stability

4.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

What natural factors can impact commodity markets?

Weather conditions
Government regulations
Consumer preferences
All of the above

5.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

Which of the following is not an energy commodity?

Crude oil
Natural gas
Gold
Brent crude

6.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

What is a futures contract in commodity trading?

An agreement to sell a commodity at current market prices.
A contract to buy or sell a commodity at a future price.
A plan to buy commodities only in the future.
A deal to trade only in soft commodities like wheat and soybeans.

7.

MULTIPLE CHOICE QUESTION

1 min • 2 pts

Why is the spot price of a commodity important?

It tells how much the commodity costs right now.
It shows the price of the commodity last year.
It is the price used for trading only gold and silver.
It predicts the future price of the commodity.

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