INTE Exam Dumps | Which of the following refers to the practice of buying a commodity on the open market for immediate

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Question 39/69

Which of the following refers to the practice of buying a commodity on the open market for immediate delivery?

A. Hedging

B. Forward buying

C. Spot buying

D. Speculative buying

Correct Answer: D

Spot buying refers to the purchase of commodities on the open market for immediate delivery. This practice is typically used to meet urgent needs or take advantage of favorable market conditions. It contrasts with forward buying, which involves purchasing for future delivery to lock in prices or quantities.

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