The Establishment of a Futures Market in a Commodity Should

question 54

Multiple Choice

The establishment of a futures market in a commodity should not have a major impact on spot prices because

• A) the futures market is small relative to the spot market.
• B) the futures market is illiquid.
• C) futures are a zero-sum game.
• D) the futures market is large relative to the spot market.
• E) most futures contracts do not take delivery.

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Definitions:

Skin Resistance

A measure of the skin's ability to resist electrical current, often used in psychophysiological research to gauge emotional or stress responses.

Benson's Relaxation

A technique developed by Herbert Benson to reduce stress and promote relaxation through deep breathing, meditation, and repetitive prayer.

Soothing Music

Music that is intended to have a calming effect on the listener, reducing stress and inducing relaxation.

Set Priorities

The process of determining the importance of tasks or goals to establish a preferential order for their attention or execution.