ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A commodity market is a marketplace for buying, selling, and trading raw materials or primary products.

Detailed explanation-2: -Commodities include agricultural products such as wheat and cattle, energy products such as oil and natural gas, and metals such as gold, silver and aluminum. There are also “soft” commodities, or those that cannot be stored for long periods of time, which include sugar, cotton, cocoa and coffee.

Detailed explanation-3: -Types of Commodities Since there are so many commodities, they are grouped into three major categories: agriculture, energy, and metals.

Detailed explanation-4: -Investors can trade commodity-based futures, stocks, ETFs, or mutual funds, or they can hold physical commodities such as gold bullion. Three of the most commonly traded commodities include oil, gold, and base metals.

Detailed explanation-5: -Types of commodities traded in India (Multi Commodity Exchange of India – MCX): Bullion: Gold, Silver. Agricultural commodities: Black pepper, castor seed, crude palm oil, cardamom, cotton, mentha oil, rubber, Palmolein.