AGR 336 Exam 1 || Already Graded A+.
Shorting the market correct answers gain entry to the market by selling a position and then
buying out of it when price is decreaing
zero-sum game correct answers for every gain, someone else loses
standard contract size for cattle correct answers 40,000 pounds
mark to market correct answers calculating gains and losses on a daily basis
standardized components of a futures contract correct answers type, quantity, quality, delivery
place, and delivery date
ways to close an open position correct answers deliver or accept delivery and offsetting
volume correct answers number of contracts traded during the day
open interest correct answers number of contracts that have not been offset
hedger correct answers trader who uses futures markets to reduce the price risk, account for 10%
of market, can accept delivery or deliver goods
tick correct answers minimum price fluctuation of a futures contract
pit correct answers location on the floor of a futures exchange where a specific commodity is
traded
approaches to study of marketing of agriculture products correct answers Institutional,
functional, behavioral, performance, marketing management
facilitating functions being performed in the system correct answers standardization, financing,
risk bearing, and market intelligence
4 p's pf marketing correct answers product, place, price, and promotion
ag marketing correct answers performance of all business activities in the flow of food products
and services from the point of initial production until they are in the hands of ocnusmers
consumer sovereignty correct answers all business and marketing activities are directed toward
the satisfaction of consumers, consumers are the king/queen in the market place
marketing mix correct answers unique way in which a firm or industry combines price,
promotion, product, and distribution channel strategies to appeal to consumers
, marketing management correct answers a management philosophy holding that all business
planning begins with an analysis of consumer wants, and that all business decisions should be
based on the profitable satisfaction of consumer wants.
cash markets correct answers markets in which delivery is expected immediately upon payment
futures market correct answers price is agreed upon now and delivery is for a specified future
point in time
ways to manage price risk correct answers forward pricing, contract farming, futures markets
future markets aka correct answers commodities markets or commodities exchanges
grain contract size correct answers 5,000 bushel
livestock contract size correct answers lean hogs and live cattle 40,000 lbs feeder cattle 50,000
lbs
speculator correct answers 80-90 percent of the market, attempts to buy and sell futures without
ever touching the physical goods, add liquidity to markets and would collapse without them
Brokers correct answers exercise trade for traders and are paid no matter what
institutional approach correct answers who of marketing, middlemen, labor and specialization,
functional approach correct answers the what of marketing, made of exchange, physical, and
facilitating functions. i.e buying and selling, storing, transporting, and processing.
standardization, financing, marketing intelligence, and risk bearing.
Behavioral systems approach correct answers power system, communications. studies the
markets
performance approach correct answers how well does the marketing system work? efficient,
progressive? etc
CBOT correct answers chicago board of trade, oldest of exchanges, handle grains and financial
currencies
CME correct answers chicago mercantile exchange, started in 1898 as chicago butter and egg
board, changed to CME in 1919, merged with COBT in 2007, handles livestock
MGEX correct answers Minneapolis grain exchange, only small market still standing, started in
1987
