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For what type of purchase would you use a Futures Exchange?
Suggested Answer: C
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The correct answer is 'no- quoting in the supplier's currency increases the risk for the buyer'. This questions comes up in a variety of formats in the exam. Remember; if the price is in your own currency (most examples in the exam are given in ) there is less risk than if the prices are quoted in a foreign currency. This is because exchange rates fluctuate; if the price is in you always know what you're paying, if it's in another currency the price can change daily depending on if the exchange rate compared to has gone up or down.
37 comments · newest first
VE
Verda
11 months ago
Tail Spend? That doesn’t sound right at all.
KR
Krystal
11 months ago
High value, high risk could also apply, but C seems more accurate.
HE
Herschel
12 months ago
Wait, are we sure about that?
CR
Crissy
12 months ago
I agree, C is the right choice.
GA
Gayla
1 year ago
Definitely for Commodity purchases!
FR
Franklyn
1 year ago
I definitely recall that futures are linked to commodities, but I wonder if there are exceptions for other types of purchases.
RO
Royal
1 year ago
I’m a bit confused; I thought futures could also relate to high-value purchases, but I guess that’s more about risk management?
CL
Claudia
1 year ago
I remember practicing a question about futures and commodities in class, so I feel like C is the right answer here.
WI
Winfred
1 year ago
I think futures exchanges are mainly used for commodities, but I'm not entirely sure if they apply to other types of purchases too.
CH
Christiane
1 year ago
I'm a little confused by this question. Futures exchanges are used for all kinds of financial instruments, not just commodities. I'll have to review my notes to make sure I understand the specific use cases for futures exchanges.
JA
Jacki
1 year ago
Okay, I've got this. Futures exchanges are used for trading commodities like oil, gold, or agricultural products. That's the type of purchase you'd use a futures exchange for. I'm confident that option C is the correct answer.
KR
Kristofer
1 year ago
Hmm, I'm a bit unsure about this one. Futures exchanges are used for trading commodities, right? But I'm not sure if that's the only type of purchase they're used for. Let me think this through.
CE
Celestina
1 year ago
This seems like a straightforward question about futures exchanges. I'll think through the options carefully and try to recall what I've learned about how futures exchanges work.
NI
Nieves
1 year ago
Okay, let me think this through. The key here is that file hashes can help identify malware even if the file name changes. That's gotta be the main benefit they're looking for. I'll go with option B.
JU
Justine
1 year ago
I'm pretty sure the Scrum-of-Scrums meeting is about coordinating the work of multiple Scrum teams. That sounds like the most logical objective to me.
KI
King
1 year ago
Futures exchanges? More like Futures Guesses if you ask me. I'll take a wild stab at C) Commodity.
VI
Vincent
1 year ago
I heard a trader once tried to futures contract a unicorn. Needless to say, it didn't end well.
JA
Janessa
1 year ago
C) Commodity
GA
Galen
1 year ago
B) Capital Expenditure
MI
Michel
1 year ago
A) Tail Spend
DO
Dorothy
2 years ago
B) Capital Expenditure? Are you kidding me? Futures are all about speculating on commodity prices, not buying equipment. C) Commodity is the way to go.
MI
Micaela
1 year ago
B) Well, I guess there are different ways to utilize Futures Exchange.
WI
Wilda
1 year ago
D) High value, high risk purchases can also benefit from using Futures Exchange.
CO
Cordell
1 year ago
C) I agree, investing in commodities can be quite profitable.
KI
King
2 years ago
A) Tail Spend is also a common use for Futures Exchange.
SO
Son
2 years ago
A) Tail Spend? Really? Futures exchanges are for big-ticket items, not office supplies. I think I'll go with C) Commodity.
LY
Lyda
1 year ago
C) Commodity
GL
Glennis
1 year ago
A) Tail Spend? Really? Futures exchanges are for big-ticket items, not office supplies.
GL
Glory
2 years ago
I'm going with D) High value, high risk. Futures trading can be pretty risky, so that seems like the most accurate description.
BI
Billye
2 years ago
Definitely C) Commodity. That's what futures exchanges are all about - trading commodities like wheat, oil, gold, etc.
VI
Victor
1 year ago
That's true. It's important to do your research and understand the market before getting involved.
AL
Albina
1 year ago
I've heard it can be quite risky though, especially if you're not careful with your investments.
DA
Daron
1 year ago
Yes, you're right. It's a way to hedge against price fluctuations in those commodities.
LI
Ligia
1 year ago
C) Commodity. That's what futures exchanges are all about - trading commodities like wheat, oil, gold, etc.
OC
Ocie
2 years ago
I believe Futures Exchange is not suitable for tail spend or capital expenditure.
RE
Remedios
2 years ago
I agree with Rodolfo, Futures Exchange is commonly used for commodities.
RO
Rodolfo
2 years ago
I think you would use a Futures Exchange for commodities.