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Question 1 of 10
1. Question
If the market price of wheat at harvest time is not as high as the expected ones then which of the following outcome is expected to have occurred when taking about the future market?
Correct
At harvest time you are worried about the market price of wheat. If the price isn’t as high as you expected due to a bumper wheat harvest, your income will suffer.
Incorrect
At harvest time you are worried about the market price of wheat. If the price isn’t as high as you expected due to a bumper wheat harvest, your income will suffer.
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Question 2 of 10
2. Question
Which of the following is not true about the forward contract with the American Bread Company (ABC)?
Correct
In this forward contract, you will agree to sell a particular quantity of wheat to ABC at a specific future date and at a price that you now fixed. This reduces your risk and the risk of ABC, you know what to expect as far as your income and ABC locks in its input quality.
Incorrect
In this forward contract, you will agree to sell a particular quantity of wheat to ABC at a specific future date and at a price that you now fixed. This reduces your risk and the risk of ABC, you know what to expect as far as your income and ABC locks in its input quality.
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Question 3 of 10
3. Question
Which of the following is not a proper method to close nonfinancial contracts with regards to future trading?
Correct
Incorrect
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Question 4 of 10
4. Question
After buying a future contract which of the following obligations are not inflicted upon the trader?
Correct
If an investor then buys a futures contract, he holds little more but an obligation to take delivery of the product underlying the contract on the day of delivery. Since the contract is not a specific proprietary title, it is never executed until the day of delivery. It’s traded back and forth between buyers and sellers, close to how you play musical chairs, except the music stops on the day of delivery.
Incorrect
If an investor then buys a futures contract, he holds little more but an obligation to take delivery of the product underlying the contract on the day of delivery. Since the contract is not a specific proprietary title, it is never executed until the day of delivery. It’s traded back and forth between buyers and sellers, close to how you play musical chairs, except the music stops on the day of delivery.
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Question 5 of 10
5. Question
Which of the following is the reason which differentiates between a financial futures contract from a commodity futures contract?
Correct
Financial futures contracts differ from commodity futures contracts in that they settle on the day of delivery with cash based on the underlying securities or index closing prices.
Incorrect
Financial futures contracts differ from commodity futures contracts in that they settle on the day of delivery with cash based on the underlying securities or index closing prices.
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Question 6 of 10
6. Question
Which of the following is not an advantage of The elimination of the noise in a Box Size concerning the chart construction?
Correct
Eliminating the noise makes the map more convenient for traders or investors who are interested in more time and action. On the other hand, if a pattern appears to be forming in the longer-term map, the size of the box can be reduced to provide more information near the likely longer-term directional transition.
Incorrect
Eliminating the noise makes the map more convenient for traders or investors who are interested in more time and action. On the other hand, if a pattern appears to be forming in the longer-term map, the size of the box can be reduced to provide more information near the likely longer-term directional transition.
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Question 7 of 10
7. Question
When using Multibox Reversal which additional functionality can be achieved when using this method of chart construction?
Correct
In a point-and-figure map, the other component is the sum of the reversal. We could retain the one-point box scale but only report a reversal to the next column when the three boxes reversed the size. This also reduces the noise in price action and prolongs the duration during which price action is reported.
Incorrect
In a point-and-figure map, the other component is the sum of the reversal. We could retain the one-point box scale but only report a reversal to the next column when the three boxes reversed the size. This also reduces the noise in price action and prolongs the duration during which price action is reported.
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Question 8 of 10
8. Question
What is the name given to the area being formed where all previous significant troughs have not likely occurred at the same price
level?Correct
Owing to the unlikely occurrence of all previous significant troughs at the same price point, a region called a zone is created between the highest and lowest horizontal line. This specification describes the real region of assistance or resistance.
Incorrect
Owing to the unlikely occurrence of all previous significant troughs at the same price point, a region called a zone is created between the highest and lowest horizontal line. This specification describes the real region of assistance or resistance.
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Question 9 of 10
9. Question
Given the condition where a horizontal line is by itself with no other horizontal lines close to it, what is the name given to identify this scenario with regards to trend analysis?
Correct
When a horizontal line is by itself with no other adjacent horizontal lines, it is typically an individual level of support or resistance. Unless accompanied by extraordinary volume, such levels usually don’t have the same strength in the future as a combination of horizontal lines within a zone.
Incorrect
When a horizontal line is by itself with no other adjacent horizontal lines, it is typically an individual level of support or resistance. Unless accompanied by extraordinary volume, such levels usually don’t have the same strength in the future as a combination of horizontal lines within a zone.
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Question 10 of 10
10. Question
In the future, what is the name given to an event that takes place when prices will often enter the zone and will break out of the outer horizontal line of the zone keeping in mind the concepts learned during trend analysis?
Correct
Prices should continue to halt in these areas in the future, albeit sometimes at a single point. Prices often go into the zone but don’t break out of the zone ‘s outer horizontal line. If they break that level, we have what is referred to as a “breakout” which has significant consequences. A price break under the support zone means buyers are satiated at that point.
Incorrect
Prices should continue to halt in these areas in the future, albeit sometimes at a single point. Prices often go into the zone but don’t break out of the zone ‘s outer horizontal line. If they break that level, we have what is referred to as a “breakout” which has significant consequences. A price break under the support zone means buyers are satiated at that point.