Multiple Choice Identify the letter of the choice that best
completes the statement or answers the question.
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1.
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The current Secretary of Agriculture is from:
a. | Kansas | d. | Texas | b. | California | e. | None of these are correct | c. | Ohio |
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2.
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The previous Secretary of Agriculture is from:
a. | Kansas | d. | Texas | b. | California | e. | None of these are correct | c. | Ohio |
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3.
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The current US President is from:
a. | Kansas | d. | Texas | b. | California | e. | None of these are correct | c. | Ohio |
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4.
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A farmer would go to what agency to participate in US government
programs:
a. | FAS | d. | ASCS | b. | FSA | e. | FSA and Farm Service
Agency | c. | Farm Service Agency |
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5.
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LPD stands for:
a. | loan deficiency payment | b. | leader development program | c. | none of these
correct |
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6.
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A farmer has marketing loan gain when the:
a. | PCP is above the loan rate | b. | When the PCP is below the loan
rate | c. | When he can collect a LDP | d. | When the grain is under loan and the PCP is
below the loan rate |
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7.
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A “non-program crop” is:
a. | corn | d. | sunflowers | b. | wheat | e. | soybeans and sunflowers | c. | soybeans |
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8.
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The current government farm program expire after crop year:
a. | 2001 | d. | 2004 | b. | 2002 | e. | None of these are correct | c. | 2003 |
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9.
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The current government farm program is a:
a. | four year program | c. | six year program | b. | Five year program | d. | seven year
program |
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10.
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LDP can be collected on corn, wheat and beans when:
a. | sold | d. | all of these are correct | b. | in the bin | e. | none of these are correct | c. | stored at the
elevator |
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11.
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PCP stands for:
a. | pop corn planted | c. | posted country price | b. | posted corn price | d. | none of these are
correct |
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12.
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There was dock workers this past March and April strike in a port loading
soybeans in:
a. | Buenos Aires, Argentina | d. | Paranagua,
Brazil | b. | New Orleans, Us | e. | None of these are correct | c. | Vancouver,
Canada |
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13.
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Over the past several years, what disease has been a problem in livestock in
Europe:
a. | Foot and Mouth | c. | Mad Cow Disease | b. | Hoof and Mouth | d. | None of these are
correct |
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14.
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What disease has created the most publicity in recent months in Europe?
a. | Foot and Mouth | d. | BST | b. | Mad Cow | e. | None of these are correct | c. | Cholera |
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15.
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South American countries are currently completing the harvest of:
a. | a very large soybean crop | b. | a poor soybean crop | c. | an average soybean
crop |
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16.
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This past winter there were expectations the 2001 US corn crop acres would
reduced due to:
a. | high phosphate costs | c. | high nitrogen cost | b. | high potash costs | d. | high herbicide
costs |
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17.
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Futures contracts of corn, wheat and beans at the CBOT made the most recent
contract lows:
a. | July 2000 | d. | March 2001 | b. | February 2001 | e. | None of these are correct | c. | during
harvest |
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18.
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The CBOT was founded in:
a. | 1968 | d. | 1850 | b. | 1948 | e. | None of these are correct | c. | 1868 |
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19.
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Quantity wise, the contracts traded at the mid American Exchange are
generally:
a. | the same as the CBOT & CME | c. | smaller than the CBOT &
CME | b. | larger than the CBOT & CME | d. | none of these are
correct |
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20.
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Corn at the CBOT trade in tricks of:
a. | 1 cent | d. | 1/8 cent | b. | 1/2 cent | e. | None of these are correct | c. | 1/4
cent |
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21.
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Soybean options at the CBOT trade in ticks of:
a. | 1 cent | d. | 1/8 cent | b. | 1/2 cent | e. | None of these are correct | c. | 1/4
cent |
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22.
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A person with a “short” position benefits when the market
moves:
a. | higher | d. | expires | b. | sideways | e. | none of these are correct | c. | down |
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23.
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A person long the market could have a position such as:
a. | grain stored in the bin unpriced | d. | basis contract at the
elevator | b. | short a put option | e. | All of these are correct | c. | long a call
option |
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24.
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A spread position would be:
a. | long May corn, short July corn | b. | long a call, short a put | c. | long a call, long a
put | d. | long May corn, short July corn AND long a call, short a put | e. | long May corn, short
July corn AND long a call, long a put |
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25.
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Initial margin is the amount of money that is:
a. | paid into a brokerage account to maintain a futures position | b. | paid to a grain
elevator to establish a DP contract | c. | paid into a brokerage to open the
account | d. | paid into a brokerage account to establish a futures position | e. | none of these are
correct |
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26.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. The 13
cents is the :
a. | strike price | d. | premium | b. | intrinsic value | e. | none of these are correct | c. | time
value |
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27.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. The $
4.46 is the :
a. | strike price | d. | premium | b. | intrinsic value | e. | none of these are correct | c. | time
value |
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28.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. The
$4.60 is the:
a. | strike price | d. | premium | b. | intrinsic value | e. | none of these are correct | c. | time
value |
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29.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. This
option has no:
a. | strike price | d. | premium | b. | intrinsic value | e. | none of these are correct | c. | time
value |
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30.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. This
option expires in:
a. | July | d. | call options do not expire | b. | June | e. | none of these are correct | c. | August |
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31.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. If the
farmer decides to sell this option before purchasing it, technically speaking, she will be a:
a. | seller | d. | broker | b. | buyer | e. | none of these, she can’t do
that! | c. | writer |
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32.
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A farmer is considering buying or selling a July 20041 $4.60 soybean call priced
at 13 cents with July beans trading at $4.46. Use this information to answer this question. If she
takes a short position with this option, she will:
a. | never have to worry about multiple margin calls | b. | will have only
limited loss potential | c. | will have unlimited loss
potential | d. | none of these are correct |
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33.
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Grain shrink charts:
a. | are the same at all elevators | b. | regulated by the CFTC | c. | regulated by the
USDA | d. | regulated by the Ohio Department of Agriculture | e. | none of these are
correct |
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34.
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If the price a farmer receives for reduced from the elevators posted price, it
typically is because of:
a. | drying charges | d. | all of these are correct | b. | excessive
moisture | e. | none of these are
correct | c. | too much foreign matter |
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35.
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Any discounts a farmer is charged for quality problems on cash grain will be
reported on a:
a. | transactions sheet | d. | all of these are correct | b. | monthly
statement | e. | none of these are
correct | c. | settlement sheet |
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36.
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Any discounts a farmer is charged for quality problems on cash grain will be
reported on a:
a. | drying charges | d. | all of these are correct | b. | excessive
moisture | e. | none are
correct | c. | too much foreign sheet |
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37.
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The test weight for No. 1 corn in pounds per bushel is:
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38.
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The test weight for No.1 wheat in pounds per bushel is:
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39.
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The test weight for No.1 beans in pounds per bushel is:
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40.
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Grain elevators are regulated by the:
a. | CBOT | c. | USDA | b. | State Department of
Agriculture | d. | non of these
are correct |
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41.
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The typical soybean crush spread break-even is about cents per bushel:
a. | 15 | d. | 45 | b. | 25 | e. | None of these are correct | c. | 35 |
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42.
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The USDA reports export grain inspections:
a. | every Monday | c. | at the end of the month | b. | every
Thursday | d. | never |
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43.
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The USDA issues Supply and Demand Reports on or about:
a. | the last day of every month | b. | the tenth of every month | c. | the last day of the
quarter | d. | as it deems necessary to control prices | e. | as directed by the
Secretary of Agriculture |
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44.
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The US grows about how many acres of corn each year?
a. | 76 to 80 billion | c. | 760 to 800 | b. | 76 to 80 thousand | d. | 76 t 80 million |
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45.
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The US typically grows:
a. | less acres of beans than corn | c. | same acres of corn &
beans | b. | more acres of beans than corn | d. | less bushels of beans than
corn |
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46.
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The US corn marketing year is:
a. | January through December | b. | December through November | c. | September through
August | d. | the same as soybeans | e. | September through August and the same as
soybeans |
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47.
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The first new crop wheat futures contract month is:
a. | January | d. | December | b. | July | e. | none of these are correct | c. | November |
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48.
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The first new crop corn futures contract month is:
a. | January | d. | December | b. | July | e. | none of these are correct | c. | November |
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49.
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Which of the following are oilseeds?
a. | hi oil corn | d. | all of these are correct | b. | soybeans | e. | soybeans and sunflowers | c. | sunflowers |
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50.
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Which of the following is not an international grain exporting company?
a. | Cargill | d. | Monfort | b. | Dreyfes | e. | none of these are correct | c. | Bunge |
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51.
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In the spring, the seasonal trend for corn and soybeans is:
a. | down | b. | sideways | c. | up | d. | there is no such thing as a seasonal
trend | e. | none of these are correct |
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52.
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The corn and bean market frequently makes a major high or major low:
a. | first half of July | d. | December | b. | March | e. | none of these are correct | c. | January |
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53.
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The average cost of production for a bushel of corn is about:
a. | $1.50 | d. | $3.00 | b. | $2.00 | e. | none of these are correct | c. | $2.50 |
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54.
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The last USDA Pig Crop Report reported the US pig numbers, compared to a year
ago, were:
a. | down 2% | d. | up 3.6% | b. | unchanged | e. | none of these are correct | c. | up
2% |
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55.
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Currently, according to the April USDA Cattle on Feed Report, percentage wise
compared to a year ago, there are how many cattle on feed in the US?
a. | down 3% | d. | up 5.6% | b. | unchanged | e. | none of these are correct | c. | up
3% |
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56.
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A grain buyer’s posted price is a function of:
a. | futures and basis | c. | futures only | b. | basis only | d. | government
regulations |
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57.
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A basis contract can be?
a. | in place before delivery | b. | in place after delivery | c. | there is no such
thing | d. | when the government authorizes it | e. | in place before delivery AND in place after
delivery |
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58.
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A forward cash contract:
a. | is in place before the grain is delivered | b. | requires the farmer
to have a futures position | c. | is the same as a Hedge to Arrive Contract
(HTA) | d. | is illegal | e. | none of these are
correct |
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59.
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When a farmer delivers grain to an elevator and puts the grain on a Delayed
Price Contract(DP):
a. | she has turned title of the grain over to the elevator | b. | receives no money at
delivery | c. | has futures market risk | d. | has basis market risk | e. | all of these are
correct |
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60.
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If a farmer expects the soybean world market price to go down and the local
market to firm, she should use which of the following marketing tools?
a. | basis contract | d. | HTA | b. | forward contract | e. | she should do nothing | c. | DP |
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61.
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A person who thinks the market price will decline is often referred to as
a:
a. | rat | b. | cat | c. | mouse | d. | bull | e. | bear |
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62.
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The twelve month period ending in March 2001, the NASDAQ market:
a. | declined sharply | b. | rallied sharply | c. | small decline
| d. | small increase |
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63.
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The phrase “coffee shop talk” refers to:
a. | coffee shops that have waitresses that talk too much to farmers, keeping them from
their work | b. | coffee shops that have farm market information broadcast on the speaker
system | c. | rural area coffee shops that hold grain and livestock marketing seminars in the
winter | d. | rural area restaurants where farmers gather and discuss the grain and livestock
markets | e. | none of these are correct |
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64.
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An elevator’s “flat” price for corn is $1.90; new corn is bid
at $1.82. Spot corn futures is $2.12; Dec. corn are at $2.25. What is the basis for corn delivered
today?
a. | 8 cents | c. | -22 cents | e. | -35 cents | b. | -8
cents | d. | +22
cents |
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65.
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Which of the following are true?
a. | basis is more predictable than the net cash price | b. | basis is more
predictable than the futures price | c. | basis is a measure of local supply and
demand | d. | basis is determined mathematically: basis= cash price minus futures
price | e. | all of these are correct |
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Matching
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Match the following: a. | if it is a fundamental market
factor | b. | if a technical market factor | c. | if it is neither a fundamental or a technical
market factor |
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66.
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open interest at the CBOT
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67.
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area of support on daily chart
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68.
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number of cattle on feed
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69.
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exchange rate of the US Dollar
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70.
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number of acres corn planted in Brazil
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71.
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Relative Strength Index
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Match the following: a. | if the answer is
Argentina | d. | if the answer is Japan | b. | if the answer is Brazil | e. | if none of these are
correct | c. | if the answer in China |
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72.
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Largest exporter of beans other than the US
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73.
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Country with most people in the world
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74.
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Largest buyer of US grains
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75.
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Had confirmed infection of Foot and Mouth in March 2001
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76.
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Will join World Trade Organization in 2001
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77.
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Sold corn to South Korea the past two years, costing the US market share of
corn sales
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