Answers: What Is a Commodity?

Self study 18
Task 1
1.1What is the commodity market ? Explain answer with examples.

Answers: What Is a Commodity?

A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. A commodity thus usually refers to a raw material used to manufacture finished goods. A product, on the other hand, is the finished good sold to consumers.
The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.

KEY TAKEAWAYS

• 
  A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type.
  
• 
  Commodities are most often used as inputs in the production of other goods or services.
  
• 
  Investors and traders can buy and sell commodities directly in the spot (cash) market or via derivatives such as futures and options.
  
• 
  Hard commodities refer to energy and metals products while soft commodities are often agricultural goods.
  
• 
  Owning commodities in a broader portfolio is encouraged as a hedge against inflation.
  

Task 2
2.1 Translate the following words and make up sentences with either of them:
1. income (Daromad) is increasing year by year
2. intelligence (aql) _: It is necessary to act wisely
3. job slots ish joylari -: Always arrive at work on time
4. laborer (mehnat stavkasi) : The issue of matching the labor rate
5. labour rate The issue of matching the labor rate
6. labour turnover The issue of matching the labor rate
7. letter of application The issue of matching the labor rate
8. marital status The issue of matching the labor rate