Question #13
Reading: Reading 32 Introduction to Commodities and Commodity Derivatives
PDF File: Reading 32 Introduction to Commodities and Commodity Derivatives.pdf
Page: 4
Status: Correct
Correct Answer: A
Question
Political risk is least likely to affect the price of which commodity?
Answer Choices:
A. Industrial Metals
B. Coffee
Explanation
Political risk is an important concern affecting the supply of oil. Political risk (especially
union strikes and restrictive environmental regulations) affects the supply of industrial
metals. Softs such as coffee are more affected by weather and disease.