Question 2 (5)

Which of the following characteristics is correct with regard to commodities?

Statement 1: Some fund managers trade commodities in the futures market because they are more liquid than their spot and forward market counterparts.

Statement 2: Land and lumber stands are are examples of commodities

Statement:3 Commodities are often used for hedging and speculation.

a. Statements 1 and 3

b. Statement 2 only

c. Statement 3 only