As Inventories of a Commodity Decline,which of the Following Is

question 2

Multiple Choice

As inventories of a commodity decline,which of the following is true?

• A) The one-year futures price as a percentage of the spot price increases
• B) The one-year futures price as a percentage of the spot price decreases
• C) The one-year futures price as a percentage of the spot price stays the same
• D) Any of the above can happen

---

Definitions:

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Major Depression

Major depression is a mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities, significantly affecting daily functioning.

Generalized Anxiety Disorder

A mental health condition characterized by excessive, unrealistic worry and tension, even if there is little or nothing to provoke the anxiety.

Oversensitivity

An exaggerated response to external stimuli, which can be emotional, physical, or both.