Speculators who think that a war in the Middle East is likely will ______ oil futures, pushing ______ the futures price.
A) buy; up
B) buy; down
C) sell; up
D) sell; down

Question

Quizplus · Accepted Answer

Speculators who believe that a war in the Middle East is likely, will buy oil futures contracts in anticipation of higher demand and lower supply, which will push up the futures price. Similarly, geopolitical tensions, natural disasters, and other factors that may disrupt the oil supply can also push up futures prices, and speculators can profit by buying futures contracts. Therefore, the best choice would be A) buy; up.

Speculators Who Think That a War in the Middle East