Which One of These Parties Would Generally Have the Most

question 56

Multiple Choice

Which one of these parties would generally have the most reason to take a short hedge position in the agricultural futures market?

• A)A local bakery
• B)A wheat farmer
• C)A major breakfast food company
• D)A beverage maker
• E)An international investor

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Definitions:

Coconuts

Tropical fruits with a hard shell, edible white flesh, and clear liquid inside, widely used for their water, milk, oil, and meat.

Fish

Aquatic animals that are a source of food, recreation, and commercial activity for humans, playing a crucial role in many ecosystems.

Unattainable Point

A situation in a production possibilities frontier or a similar model where the point representing a combination of goods or services produced cannot be achieved given current resources or technology.

Tons

A unit of weight equal to 2,000 pounds in the United States (short ton) or 2,240 pounds in the UK (long ton), often used to measure heavy commodities.