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A method of buying in anticipation of price fluctuation in the commodity market is?

Commerce
WAEC 2018

A method of buying in anticipation of price fluctuation in the commodity market is?

  • A. speculation
  • B. arbitrage
  • C. contango
  • D. hedging
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Correct Answer: Option A
Explanation

Speculation in regards to commodity market, is the purchase of a commodity with the hope and expectation that, they maybe variation or changes in prices of the said product. This normally happens when there is fear that they maybe an upward turn or increase in price in future.


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NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Project Topics and Materials, Post-UTME past questions - Download now or upload yours to get paid
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Project Topics and Materials, Post-UTME past questions - Download now or upload yours to get paid
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Project Topics and Materials, Post-UTME past questions - Download now or upload yours to get paid
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
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