The More Liquid an Asset Is Relative to Alternative Assets,holding

question 43

True/False

The more liquid an asset is relative to alternative assets,holding everything else unchanged,the more desirable it is,and the greater the quantity demanded.

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Definitions:

Soybean Future

A standardized contract for the future sale or purchase of soybeans, traded on a commodities exchange.

Wheat Spot Price

The current market price at which wheat can be bought or sold for immediate delivery.

Profit

The financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Contango

A situation in futures trading where the future price of a commodity is higher than the spot price, often indicating expectations of rising prices.