All of the Following Are Characteristics of the Cash Market

question 12

Multiple Choice

All of the following are characteristics of the cash market except

• A)The spot price represents the actual dollar value for the immediate transfer of a commodity
• B)There must be a transfer of the actual physical possession of the goods
• C)Prices in the cash market are independent of prices in the futures market
• D)All of the above are characteristics of the cash market

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Definitions:

Notes Payable

Short-term or long-term liabilities representing amounts the company owes because it has issued promissory notes.

Accounts Receivable

Receivables by a corporation from its clients for goods or services that have been extended or utilized, yet the corresponding payments are awaited.

Common-base Year Statement

Financial statements that are adjusted to a single point in time or base year, facilitating comparison across different time periods.

Market-to-Book Ratio

A ratio used to compare a company's current market price to its book value.