Normal Backwardation

question 20

Multiple Choice

Normal backwardation

• A) maintains that for most commodities,there are natural hedgers who desire to shed risk.
• B) maintains that speculators will enter the long side of the contract only if the futures price is below the expected spot price.
• C) assumes that risk premiums in the futures markets are based on systematic risk.
• D) a and b.
• E) b and c.

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Definitions:

Style of Life

A concept introduced by Alfred Adler, referring to an individual's unique way of achieving superiority and managing lifestyle tasks.

Social Interest

A concept in psychology that refers to an individual's attitude towards and level of engagement with their community and society at large.

Alfred Adler

An Austrian medical doctor and psychotherapist who is best known for his theories on the importance of feelings of inferiority and the development of lifestyle.

Inferiority Complex

A psychological condition where an individual feels a deep sense of incompetence, underachievement, or inadequacy, often leading to overcompensation in other areas.