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Price Risk Management in Agri Commodities For FPO Theory Format
Price Risk Management in Agri Commodities For FPO Theory Format
Consumer Price Which economic Consumer Price Box Office Social Media Television
Index (CPI) indicator is Index (CPI) Revenue Engagement Ratings
crucial for
predicting
commodity
1-A Match the items 1-B 1-C 1-C 1-A
2-C in Column A with 2-C 2-B 2-B 2-C
3-B the 3-A 3-A 3-A 3-B
4-D corresponding 4-E 4-E 4-D 4-D
5-E items in Column 5-D 5-D 5-E 5-E
B by choosing
the correct letter
1.Commodity
Exchange
2.Weather
Conditions
3.Hedging
4.Government
Policies
5.Non-
Agricultural
Commodity
A. Facility for
buying and
selling
commodities
B. Mitigating
price risks in
commodity
trading
C. Impacting crop
production and
Using stored Pledge-financing
market prices Traditional Direct consumer Using stored Ignoring financial
crops as is primarily farming methods sales crops as transactions in
collateral for associated with: collateral for agriculture
loans loans
Providing loans Pledge-financing Providing loans Selling pledged Ignoring financial Storing crops
against stored for FPOs against stored crops directly to support for FPOs without any
agricultural involves: agricultural consumers financial
produce produce transaction
1- False Choose the 1- True 1- False 1- True 1- True
2- True statements with 2- True 2- True 2- False 2- False
3- False True or False 3- False 3- False 3- False 3- False
4- True 1) Modern 4- True 4- True 4- True 4- False
warehousing
primarily involves
using traditional
storage methods
for agricultural
produce
2) Pledge-
financing allows
FPOs to use their
stored crops as
collateral for
obtaining loans.
3) The primary
purpose of
modern
warehousing is to
increase post-
harvest losses in
agricultural
commodities.
4) Hedging is a
risk management
strategy that
helps FPOs
mitigate the
impact of price
fluctuations in
commodity
trading.