What kind of goods are sold in the commodity market?

O

A. Monetary

B. Substitution

O

O

C. Normal

D. Unprocessed

D. Unprocessed

Explanation:

Commodity markets are markets that specialize in the sale of unprocessed goods. These goods can include metals like iron or gold, agricultural goods like beans and rice, energy goods like crude oil as well as livestock. In commodity markets, prices are fixed between the two parties involved  in trading.

An agreement is reached for the buyer to supply goods at a later time, and this forms the basis for a contract at the spot. This type of contract where an agreement is reached for the delivery of goods in the future is known as Forward contract.

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