Multiple Choice
In the context of investments in securities, money invested is usually used to do which of the following?
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7. Receivables and Investments
Introduction to Investments in Securities
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In which financial market do people typically invest in commodities such as cocoa beans and corn?
A
Commodities market
B
Foreign exchange market
C
Money market
D
Stock market
Verified step by step guidance1
Understand the concept of financial markets: Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, currencies, and commodities.
Learn about the commodities market: The commodities market is a specialized financial market where raw materials or primary agricultural products like cocoa beans, corn, oil, and gold are traded.
Differentiate between the given options: The foreign exchange market deals with currency trading, the money market focuses on short-term debt instruments, and the stock market involves trading shares of companies. None of these are primarily focused on commodities.
Recognize the correct market for commodities: Since cocoa beans and corn are raw materials, they are traded in the commodities market, which is specifically designed for such assets.
Conclude that the commodities market is the correct answer for trading items like cocoa beans and corn, as it specializes in the buying and selling of physical goods and derivatives tied to these goods.
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