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WorksheetsCommodities & Contracts
Total questions: 10
Worksheet time: 50mins
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
