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Understanding Commodities Quiz

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1. What is a commodity in the world of finance and investing?

2. Why are commodities important in the world of finance and investing?

3. What is a futures contract?

4. What is the primary difference between spot price and futures price of a commodity?

5. What does it mean if a commodity futures market is in 'contango'?

6. What does it mean if a commodity futures market is in 'backwardation'?

7. Which of the following is NOT a type of commodity?

8. What is the role of a commodity exchange?

9. What factors influence the price of commodities?

10. Name a commodity that generally acts as a hedge against inflation?