If the Market for Corn Futures Has More Prospective Sellers

question 26

Multiple Choice

If the market for corn futures has more prospective sellers than buyers, then one would expect:

• A) the price of corn futures to decrease.
• B) the price of corn futures to increase.
• C) some traders to change from seller to buyer.
• D)the market to cease operations until demand is rebalanced.

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Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account. It is positioned on the left side of an account ledger.

Credit

An accounting entry that increases the balance of liabilities and equity accounts or decreases the balance of an asset or expense account.

Horizontal Analysis

A financial analysis technique that evaluates the changes in the amounts of financial statement items over a period.

Sales

The total amount of goods or services sold by a company during a specific period of time, indicating the company's primary revenue generation activity.