Speculators do all of the following except for:
A. Provide risk capital
B. Provide volume and liquidity
C. Keep hedgers from using the market for their benefit
D. Keep markets in alignment
Answer: C
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Agricultural Economics
- One of the three major farm problems is instability of farm prices.
- Parity price means prices that will give a unit of an agricultural commodity the same purchasing power that unit had in some previous period.
- Women, Infants and children (WIC) is an example of a demand expansion program.
- Speculators in the futures market make money from the rise and fall of prices.
- There is only one way to settle a futures contract, and that is to take delivery of a commodity.
- The number of open contracts in the market is equal to the open interest.
- Donuts are a example of a production activity.
- There can only be positive production externalities.
- Hedonic Pricing involves determining the value of an amenity by asking people how much they are willing to pay for it.
- Non market goods from the forest include wilderness, oxygen, water quantity and wood.
- Market Goods from the forest include wood, homesites and oxygen.
- Cows and trees would be considered a biological resource.
- Rangeland overgrazing diminishes the quantity and productivity of the resources.
- Product flow from cows and trees can maintained indefinitely.
- Cows trees exhibit characteristics of flow and fund resources.
- A fund resource in one that has quantities fixed in their natural state.
- All of the following are reasons for price risk except for:
- Common Property is considered all of the following except
- The demand expansion programs include all of the following except:
- Taking a position in the futures market to make money on the rise and fall of prices is called
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