The Establishment of a Futures Market in a Commodity Should

question 54

Multiple Choice

The establishment of a futures market in a commodity should not have a major impact on spot prices because

• A) the futures market is small relative to the spot market.
• B) the futures market is illiquid.
• C) futures are a zero-sum game.
• D) the futures market is large relative to the spot market.
• E) most futures contracts do not take delivery.

---

Definitions:

User Criticisms

Feedback from users expressing dissatisfaction or problems they have encountered with a product or service.

Brand Buzz

The conversation and excitement surrounding a brand, often measured by social media mentions, reviews, and overall public sentiment.

Facebook

Facebook is a leading social media platform that enables users to create profiles, share photos and videos, send messages, and keep in touch with friends, family, and groups.

Social Network

Online platforms that enable users to connect, interact, and share content with others within a virtual community.