Commodity Trading Quiz – Intermediate 5 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 26% LinkedIn Facebook Twitter VKontakte 0% Restart quiz Support Platform Spread Trading Instrument Comments Rating 0 (0 reviews)
