The Basic Difference Between Speculators and Hedgers in Futures Contracts

question 8

Multiple Choice

The basic difference between speculators and hedgers in futures contracts is that speculators:

• A) will profit regardless of the direction of price change.
• B) are not protecting their commodity holdings.
• C) are concerned only with long-term price movements.
• D)take a position in more than one commodity at a time.

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Definitions:

International Tourists

Individuals who travel to countries other than their own for leisure, business, or other purposes, contributing to the global tourism industry.

Young Working People

Individuals, often in their late teens to early adulthood, engaged in the workforce and contributing to the economy while potentially pursuing education or vocational training.

Patronage

The support, encouragement, privilege, or financial aid that an organization or individual bestows to another; in politics, it can refer to the distribution of jobs and grants to supporters of those in power.

Gilded Age

A period in late 19th-century America characterized by rapid economic growth, industrialization, and ostentatious wealth, but also marked by social inequalities and political corruption.