Which of the Following Is True for a Consumption Commodity

question 14

Multiple Choice

Which of the following is true for a consumption commodity?

• A) There is no limit to how high or low the futures price can be, except that the futures price cannot be negative
• B) There is a lower limit to the futures price but no upper limit
• C) There is an upper limit to the futures price but no lower limit, except that the futures price cannot be negative
• D) The futures price can be determined with reasonable accuracy from the spot price and interest rates

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Definitions:

Preganglionic Sympathetic

Pertains to the neurons that run from the central nervous system to a ganglion in the sympathetic part of the autonomic nervous system.

Acetylcholine

A neurotransmitter in the body that is involved in muscle activation, heart rate, and many other functions in the nervous system.

Autonomic Muscarinic Receptors

A type of receptor located in the autonomic nervous system that responds to the neurotransmitter acetylcholine.

Intestinal Motility

The movement of the intestines which facilitates the progression of its contents towards elimination.