Commodity Trading Is Based on the Use Of

question 40

Multiple Choice

Commodity trading is based on the use of:

• A)actual dollars.
• B)a margin.
• C)a hedge.
• D)fictitious money.

---

Definitions:

Cash Flow To Creditors

A firm’s interest payments to creditors less net new borrowings.

Long-Term Loan

A type of financing that is paid back over an extended time frame, extending beyond one year.

Capital Gains

The gain realized when the price at which an asset or investment is sold surpasses the price it was originally bought for.

Eligible Dividends

Dividends that are entitled to a reduced tax rate in certain jurisdictions, often meeting specified criteria set by the tax authorities.