Benefits of commodity exchange. - SS1 Commerce Past Questions and Answers - page 1
What is one of the benefits of commodity exchanges?
Increased price volatility
Reduced liquidity
Risk management
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What do commodity exchanges help establish?
Market volatility
Fair and transparent prices
Price manipulation
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What is one advantage of liquidity on commodity exchanges?
Higher bid-ask spreads
Reduced trading volume
Competitive pricing
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What do standardized contracts on commodity exchanges ensure?
Uniformity and ease of trading
Unique contract terms for each participant
Trading complexity
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What is one benefit of commodity exchanges in terms of market access?
Access to diverse markets
Regional trading only
Access to diverse markets
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Explain in simple terms what price discovery means in the context of commodity exchanges.
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What role do standardized contracts play in commodity exchanges? Provide one key benefit.
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