Commodity Trading Quiz - Intermediate

Created on December 04, 2020 By

Eddie Vorman

Commodity Trading Quiz - Intermediate

The commodity market is one of the most interesting and diversifying in the world, but it also offers many challenges, especially if you are a beginner. There are so many branches, as well as different ways of trading. So, if you want to achieve success, it will be helpful to learn about them. Let's see how well you can navigate through the commodity market.

1 / 10

What is the most traded commodity in the world?

Cotton

WTI crude (oil)

Cocoa

Iron

2 / 10

Why are the commodities attractive for investors?

Because of their stability

Because of transparency and fair price discovery

Because they offer more gain per share than other futures

3 / 10

Do you know what a commodity product spread is?

It is the price of the finished product created from commodity

It is the price difference between a raw material commodity and a finished product designed from that commodity

It is the price of a raw material commodity until it undergoes refinement

None of the answers are correct

4 / 10

What do traders call an “Offer Price” in the commodity market?

The market price for commodities at the moment of trading

The lowest price at which a trader is willing to sell a commodity

The price buyers are willing to pay for a commodity

The price at the end of the day's trading on a market

5 / 10

What does the Spot price indicate?

The price of a commodity on the expiry date

Commodity's price on the delivery day

The cost of a commodity with immediate delivery on the physical market

6 / 10

What is Bullion in commodity market?

It is the generic word for all raw materials

It means agricultural commodities, such as wheat, barley, cotton and so on

It is the generic word for gold and silver

None of the above

7 / 10

Which one of the following statements is correct about commodities?

Commodities, which are traded on regulated exchanges usually need to be fungible

Market forces set the price for all types of a commodity

The commodities which can be standardized, are generally traded on exchanges

All of the above

8 / 10

Please choose the first formal soft commodity exchange:

London Metal Exchange

Chicago Board of Trade

Australian Securities Exchange

New York Board of Trade

9 / 10

Which one of the following statements is false?

A majority of commodities, which are traded on regulated exchanges are subject to stringent quality checks

A commodity index represents a composite of the prices of a collection of commodities

All of the agricultural commodities are processed raw materials

The commodity price may rise unreasonably, when investors are particularly attracted to a certain commodity, leading to a speculative bubble

10 / 10

Please choose the correct statement:

Commodity trading was explicitly designed for farmers to guarantee a profit for their produce

Futures commodity trading can give sellers and buyers a fixed price so that they can plan ahead

The Panama Canal made it possible for shipping to pass from the Mediterranean to the East and Africa

A majority of commodity trading is done through derivatives in Chicago

Your score is

The average score is 37%

Commodity Trading Quiz – Intermediate