Financial Markets by Yale University (Week
5) Exam Questions And Answers Latest
Update 2025
What is the effect of traders storing grain to wait for higher prices?
-
correct answer ✅It is essential in preventing grain shortages.
In commodities trading, what is the role of forwards and futures? -
correct answer ✅Warehouses buy from the farmer in forwards,
and then hedge on futures.
When an investor uses margin to buy or sell securities, how are the
securities paid for? -
correct answer ✅A combination of an investor's own funds and
money borrowed from a broker.
What is the primary purpose of purchasing futures if they are rarely
delivered? -
correct answer ✅To protect against price fluctuations.
What often happens to futures at the time of the crop for
commodities with a specific well-defined harvest window? -
correct answer ✅They tend to be traded below the expected spot
price at the contract's maturity.
5) Exam Questions And Answers Latest
Update 2025
What is the effect of traders storing grain to wait for higher prices?
-
correct answer ✅It is essential in preventing grain shortages.
In commodities trading, what is the role of forwards and futures? -
correct answer ✅Warehouses buy from the farmer in forwards,
and then hedge on futures.
When an investor uses margin to buy or sell securities, how are the
securities paid for? -
correct answer ✅A combination of an investor's own funds and
money borrowed from a broker.
What is the primary purpose of purchasing futures if they are rarely
delivered? -
correct answer ✅To protect against price fluctuations.
What often happens to futures at the time of the crop for
commodities with a specific well-defined harvest window? -
correct answer ✅They tend to be traded below the expected spot
price at the contract's maturity.
