Question 11 (1 point)

Because commodities are physical assets, most futures contracts are closed out through the taking of delivery.

Question 11 options:

	True
	False

Question 12 (1 point)

To reduce commissions on commodity futures, invest in long-term contracts.

Question 12 options:

	True
	False

Question 13 (1 point)

Because commodity futures are contracts and not real securities, the market is fairly unregulated.

Question 13 options:

	True
	False

Question 14 (1 point)

Advantages of investing in commodity futures include all of the following EXCEPT

Question 14 options:

	daily price limit.
	low initial investment.
	they are able to earn large gains with a small price movement (leverage).
	they are able to lock-in the price of an asset to be purchased in the future.
	all of the above are advantages to the commodity futures market

Question 15 (1 point)

	the occurrence of a significant weather event can impact commodities such as wheat.
	the non-occurrence of a significant weather event can impact commodities such as corn.
	record snowfall can destroy commodities such as wheat and corn.
	hurricanes can destroy commodities such as wheat and corn.
	all of the above are examples

Question 16 (1 point)

Shorting securities that are held long is called selling short "against the box."

Question 16 options:

	True
	False

Question 17 (1 point)

The major technique to reduce risk is to diversify a portfolio across asset classes.

Question 17 options:

	True
	False

Question 18 (1 point)

A constructive sale is a transaction in which the owner of an appreciated security enters into one of which of the following transactions?

Question 18 options:

	A short sale of the same or substantially identical property.
	A futures or forward contract to deliver the same or substantially identical property.
	An offsetting notional principal contract with respect to the same or substantially identical property.
	all of these are constructive sales.
	none of these would be considered a constructive sale.

Question 19 (1 point)

Option strategies include which of the following?

Question 19 options:

	short call
	bull spread
	long call
	protective put
	all of these are option strategies

Question 20 (1 point)

Silver coins may be purchased directly in 65 pound bags.

Question 20 options:

	True
	False

Question 21 (1 point

Investment in gold and precious metals should be made when the investor anticipates that the purchasing power of the dollar will be eroded by high rates of inflation.

Question 21 options:

	True
	False

Question 22 (1 point)

Which of the following is NOT a factor to consider when selecting among various precious metals in which to invest?

Question 22 options:

	the price of one metal compared with another
	sensitivity to political changes
	the weather in South African nations
	the position of the price relative to recent highs and lows of the metal
	the potential downside risk

Question 23 (1 point)

Flea markets are not a good source of collectibles.

Question 23 options:

	True
	False

Question 24 (1 point)

An investment-quality collectible must be rare, popular, and have ready marketability.

Question 24 options:

	True
	False

Question 25 (1 point)

Factors that influence the quality of a collectible include all of the following EXCEPT

Question 25 options:

	price.
	rarity.
	marketability.
	popularity.
	all of these choices influence the quality of a collectible.