Commodities market

Hi! I'm student and I'm learning about commodities market. I've answered a multiple choice questions, please correct me if I'm wrong. Thank you in advance

1) What commodity derivatives are used for?
a. Hedge price risk
b. Invest in the commodities sector
c. Manage credit risk in a physical trade transaction
d. Speculate on commodity prices

I've answered a

2) What is the most traded product in the world by volumes?
a. Oil
b. Copper
c. Iron Ore
d. Coffee

I've answered a (Crude Oil)

3) What is the first job you will have if you start as a physical trader?
a. Treasurer
b. Operator
c. Assistant Trader
d. Hedge desk associate

I've answered b.

4) Why are producers using the derivatives market?
a. To sell their production forward
b. To hedge their price risk
c. To get market information about oil movement / squeeze
d. To sell directly to end users

I've answered b

5) Who is using derivatives?
a. Producers
b. Consumers
c. Traders
d. All the above

I've answered d

6) Who is speculating prices?
a. Producers
b. Consumers
c. Traders
d. All the above

I've answered c

7) Where are you most likely to work from as a coffee trader?
a. Houston, Texas
b. New York, New York
c. Geneva, Switzerland
d. Singapore

My answer is c 

8) Why most commodities are traded from Switzerland from 1 to 4
… Tax
… Mountains
… Time zone
… ecosystem

My answer is 1 : Tax (for sure), 2: ecosystem, 3: time zone, 4: mountains (but not sure)

9) Who is Ivan Glasenberg?
a. A friend of Marc Rich
b. A physical trader
c. A swiss national
d. A high net worth individual

I've answered d

10) What skills do you need to be a dairy trader?
a. understand your underlying market
b. How to use a Bloomberg
c. Being able to solve the black and Scholes formula
d. Have commercial acumen

I've answered b

11) How long does it take to find finance and build a mine?
a. <5 years
b. 5 to 10 years
c. 10 to 20 years
d. 20 years plus

I've answered b

12) How many tankers an oil trader can trade in a year?
a. 1 or 2
b. 5
c. 10
d. 20+

I have no idea but I've answered a

13) How many years does it takes to become a physical trader?
a. 1
b. 5
c. 15
d. 20+

I've answered b

14) What is country risk?
a. The risk that your shipment will not be shipped on time
b. The risk that your client will default on your contract
c. The risk that your legal document in country has no legal recourse
d. The risk of doing business in a country

I've answered d (not very sure though)

15) What is a paper trader?
a. A proprietary trader
b. A trader of contracts
c. A physical commodity trader
d. All the above

I've answered b (but again not sure)

16) Where do we find information on a particular commodity?
a. In the Financial Times
b. On the ground
c. On internet
d. All the above

I've answered c

17) Why are we trading commodities?
a. Because modern society is based on commodities
b. Because supply and demand are not in the same location
c. Because we can make a hell of a lot of money
d. Because we can, and when we can, we do

I've answered c

18) What is the CFTC?
a. The regulatory agency in charge of the commodities markets
b. A supranational US agency to monitor the commodities and futures markets
c. The regulatory agency sanctioning illegal practices
d. A reporting body controlling and providing information on market participants

My answer is a (it's also in charge of future markets)

19) Who are the largest holders of derivatives in the commodities space?
a. The producers
b. The financial institution
c. The consumers
d. The physical traders

I've answered d (but not sure)

20) What is the most important metric for a physical trading house?
a. Sales
b. EBITDA Margin
c. Bonus pool size
d. Margin per tons

I've answered d

21) Can we lose money on the derivatives market as a producer?
a. No, as we hold the underlying commodities
b. Yes, if the market is going down and we are under hedged
c. No, we have access to all the market information
d. Yes, if we hedged position and the market is going up

I've answered b

22) What happened if we let expire a long London Metal Exchange (LME) future contract?
a. You will be delivered an oil barrel at the location of your choosing
b. Your will lose your contract
c. You will have to sell it to another market participant
d. You will have to deliver Copper at the location of your choosing

I was (and still) hesitating between a and c. I've answered a

23) In a rising price environment, what a producer should do?
a. Wait to get the best price possible
b. Over hedge his position
c. Under hedge his position
d. Hedge only 1 month forward

I've answered a

24) In a declining price environment, what a trader should do?
a. Hedge all his positions
b. Does not really matters if he hedged his trades
c. Wait to get the lowest price possible
d. Short the market

I've answered d

25) What is driving commodity prices?
a. market speculators
b. Consumers and producers
c. Traders
d. All the above

I've answered d

26) In a deficit market what should you do as physical trader?
a. Trade long dates options on the futures market
b. Make sure you have enough to supply your clients
c. Store as much as possible to increase the deficit and speculate on price
d. Secure long-term sales contracts

I've no idea

27) What are the conditions for an electrical vehicle to be environmentally neutral?
a) All the raw materials need to be sourced from a transparent market
b) 100% of the car should be recyclable
c) The grid on which you charge your car should run 100% on solar panels
d) You do not buy a car you walk instead 

I've answered b

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