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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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WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995