Question

Many commodities have futures markets associated with them. What is a futures market?

1) A market where commodities are bought and sold for immediate delivery
2) A market where commodities are bought and sold for future delivery
3) A market where commodities are bought and sold for both immediate and future delivery
4) A market where commodities are bought and sold for speculative purposes

Answer 1

A futures market is a type of market where commodities are bought and sold for future delivery through standardized contracts traded on exchanges.

Step-by-step explanation:

A futures market is a type of market where commodities are bought and sold for future delivery. It allows traders to enter into contracts to buy or sell a specific amount of a commodity, such as oil or wheat, at a predetermined price and date in the future. These contracts, known as futures contracts, are standardized and traded on exchanges.