The Difference Between the Cash Market and the Futures Market

question 56

Multiple Choice

The difference between the cash market and the futures market is:

• A)that commodity prices cannot be negotiated in the futures market, while they can be in the cash market.
• B)that larger margins are used in the cash market.
• C)that in the cash market, there must be a transfer of the physical possession of the goods.
• D)that the commodities are usually less expensive in the futures market.

---

Definitions:

Order Takers

Individuals or systems responsible for taking customer orders without actively engaging in sales persuasion or additional selling.

Market Share

Market share is the percentage of a market (in terms of sales units or revenue) captured by a company or brand compared to its competitors.

Preserve Ongoing Relationships

The act or strategy of maintaining continuous and beneficial interactions and associations with others over time.

Outside Order Taking

A sales process that involves sales representatives visiting potential customers in their locations to take orders directly.