1. ………………………….

is the process of purchase or sale of a commodity

at the present price with the object of sale or purchase at some future date at
a favourable price.
2. The advantage of contract farming is
A) High marketing cost B) Less production
B) Price assurance D) All the above
3. ……………………………..refers to speculation on the part of a person
who makes it his profession.
4. The speculation prohibited by the Government is ………………..
5. ………………………….refers to the purchase or sale of a commodity in a
futures market accompanied by a sale or a purchase in the cash market
6. Futures trading are also called as ……………
7. Forward trading in agricultural commodities was regulated under
the………………………
8. Forward Market Commission was established in the year………………….
9. …………………………………..is an arrangement between the farmer
producers and the agri-business firms to produce certain pre-agreed
quantity and quality of the produce at a particular price and time.

Answer the following:

1.Differentiate Speculation and Hedging.
2.What conditions are necessary for a commodity to be used in futures trading?
3.List the advantages of Contract farming for the farmers.
4.List the advantages of Contract farming for the Processing company.