If an Investor Is Going to Participate in the Commodities

question 83

Multiple Choice

If an investor is going to participate in the commodities market by buying a contract, he/she should do which of the following?
I. Realize that making a profit is relatively easy.
II. Be mentally prepared for an enormous loss.
III. Be financially able to meet repeated margin calls.
IV. Spend all of their available cash on margin deposits.

• A) I, II and III only
• B) II and III only
• C) II and IV only
• D) II, III and IV only

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Definitions:

Epidermis

The outermost layer of skin, serving as a barrier against environmental damage and pathogens.

Sweat Gland

A gland that produces sweat, found in the skin of mammals, which helps in thermoregulation and excretion.

Sebaceous Gland

A small gland in the skin which secretes a lubricating oily matter (sebum) into the hair follicles to lubricate the skin and hair.

Stratum Basale

The deepest layer of the epidermis, responsible for generating new skin cells.