Question : Which market provides a platform for trading agricultural products and natural resources?
Option 1: Stock market
Option 2: Commodity market
Option 3: Forex market
Option 4: Bond market
Correct Answer:
Commodity market
Solution : The correct answer should be (b) Commodity market.
The commodity market provides a platform for trading agricultural products and natural resources. It is a specialized market where various commodities such as grains, oilseeds, livestock, precious metals, energy resources, and other raw materials are bought and sold.The commodity market allows producers, consumers, and investors to trade in these physical goods or their derivatives contracts. Participants in the commodity market include farmers, miners, commodity traders, and speculators.
Commodity markets can be further divided into spot markets and futures markets. In the spot market, commodities are traded for immediate delivery, while the futures market allows for the trading of commodity contracts with future delivery dates. These markets enable price discovery, risk management, and the facilitation of transactions related to the underlying commodities.
