PTE Reading Multiple-Choice:
Read the text and answer the multiple choice question by selecting all the correct responses. You will need to select more than one response.
Brokerage firms serve as a vital link between buyers and sellers in ensuring trading of commodities through exchanges. These are the firms which actually execute sales and purchase orders of traders on exchanges against a specified rate of commission. In addition, these firms take their own positions in markets. As sophisticated players of commodity trading, these firms are also consulted by major traders on likely demand and supply scenarios regarding commodities and consequent market dynamics.
The agriculture commodities traded on major exchanges include soybean, cotton, corn and wheat; crude oil is one of the major non-agriculture exchange-traded items. Commodity brokerage firms are equally active in options as well as futures markets.
Commodity brokerages operate along the same lines as their counterparts in stock, bond and currency markets. The big ones usually provide value added services in addition to executing orders of their clients. Under value added services, these firms usually provide key market intelligence through published news letters and personal advice. These are called full service commodity brokerage firms in the market jargon, and they charge a relatively high rate of commission. In contrast, there are firms which offer few services other than executing their clients’ sale and purchase orders. But, on the other hand, they also charge comparatively low rates of commission.
Question:
What Commodity brokerages do provide and which is the non- agriculture exchange-traded item?
A. Low rates of commission
B. Vital link between buyers and sellers
C. Value Added Services in addition to executing orders of their clients
D. Crude Oil
Answers:
C. Value Added Services in addition to executing orders of their clients
D. Crude Oil
