WAEC Commerce 2018 Objective — Question 31
Question 31 of 50 from the West African Examinations Council (WAEC) Commerce 2018 Objective paper, with the correct answer and a full explanation.
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A method of buying in anticipation of price fluctuation in the commodity market is
- A. speculation
- B. arbitrage
- C. contago
- D. hedgingCorrect
Explanation
Hedging is the practice of buying/selling to protect against (anticipate and offset) future price fluctuations.
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