Hedging in the Commodities Market Is a Strategy Primarily Used

question 74

Multiple Choice

Hedging in the commodities market is a strategy primarily used by

• A) individual investors with high risk tolerance levels for commodities.
• B) institutional investors on behalf of their conservative investors.
• C) by producers and processors of commodities.
• D) investors looking for short-term capital gains.

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Definitions:

Cryptocurrency

A type of digital or virtual currency that uses cryptography for security and operates independently of a central bank.

Price Volatility

The degree of variation in the price of a financial instrument over a certain period of time, indicating the level of risk associated with it.

Store Value

Store value refers to the inherent worth a product or service offers to customers, often influencing their purchase decisions.

Fund Returns

Fund Returns are the profits or losses from investments in mutual funds, ETFs, or other pooled investment vehicles, typically presented as a percentage gain or loss over a specific period.