The High-Risk, Speculative Nature of Commodities Futures Is Due Primarily

question 67

Multiple Choice

The high-risk, speculative nature of commodities futures is due primarily to:

• A)the presence of hedgers in the markets.
• B)high leverage brought about by low margin requirements.
• C)Both A and B
• D)None of the above

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Definitions:

Before

Prior to in time or order.

Dis-

A prefix indicating separation, removal, or negation.

Dislocate

To displace the bones of a joint, causing them to no longer be in their proper relation to each other.

Separate

To set or keep apart; to divide or segregate.