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Multiple Choice
Which of the following is typically traded in a commodities market?
A
Government bonds
B
Raw materials such as oil, wheat, and gold
C
Patents and copyrights
D
Shares of technology companies
Verified step by step guidance
1
Understand what a commodities market is: it is a marketplace where raw materials and primary products are bought and sold, typically standardized and interchangeable goods.
Identify the types of goods traded in commodities markets, which usually include natural resources and agricultural products such as oil, wheat, gold, and other raw materials.
Recognize that government bonds are financial instruments representing debt and are traded in bond markets, not commodities markets.
Note that patents and copyrights are intellectual property rights and are not traded in commodities markets; they are part of legal and financial markets.
Understand that shares of technology companies are equity securities traded in stock markets, not commodities markets.