True/False
Indicate whether the sentence or statement is true or
false.
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| 1. | Interest earned on commodities
is limited to 10%.
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| 2. | The Chicago Board of Trade was
established in 1948.
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Multiple
Choice
Identify the letter of the choice that best completes the statement or answers the
question.
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| 3. | If you were to invest in Live
Cattle, Lean Hogs or Pork Bellies, at which commodities exchange would you buy them? a. | Chicago Board of Trade | c. | Chicago Mercantile Exchange | b. | Osaka Rice Exchange | d. | New York Stock Exchange | | | | |
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| 4. | Most hedgers can be broken into
one of five categories; which one listed below is NOT one of those categories? a. | Farmers | c. | Processors | e. | Feed Salesman | b. | Exporters | d. | Feedlot
Operators | | | | | | |
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Completion
Complete each sentence or statement.
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| | 5. | A contract for commodities
where terms are standardized with the exception of price, which is determined in public at an
established exchange is known as a ___________ contract. (spelling counts)
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| | 6. | The taking of a position in a
futures market that is opposite of the position in the cash market is known as ____________.
(spelling counts)
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| | 7. | A legal document giving the
lender a claim against the property if the principal, interest or both are not paid as agreed is
known as a ____________. (spelling counts)
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| | 8. | A _______ rate mortgage is a
mortgage where the interest rate is set for the life of the loan. (spelling counts)
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| | 9. | A ___________ rate mortgage is
a mortgage where the interest rate is periodically lowered or raised, depending upon the current
interest rates. (spelling counts)
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| | 10. | If you purchase a home, you
generally go through a person licensed in the buying and selling of homes, called a ___________.
(spelling counts)
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