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Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.
Q. Which of the following shows a cause-effect relationship between its two components?
  • a)
    Reduction in interest rates and abundance of food commodities
  • b)
    Reduction in energy prices and increase in food commodity prices
  • c)
    Injection of liquidity and the drop in investor confidence
  • d)
    Dipping of US dollar value and the volatility in commodity markets
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Direction: The financialisation of commodity trade and current extraor...
Lines 5 and 6 of the passage bring out this option as the correct one. The other options are neither mentioned nor implied in the passage.
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Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer?
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Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? for SSC CGL 2024 is part of SSC CGL preparation. The Question and answers have been prepared according to the SSC CGL exam syllabus. Information about Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for SSC CGL 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for SSC CGL. Download more important topics, notes, lectures and mock test series for SSC CGL Exam by signing up for free.
Here you can find the meaning of Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices. The recent reductions in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low return in treasuries. The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce greater volatility in commodity markets. The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items. It is evident that this phenomenon is now also coinciding with the across-the-board rise in food prices.Q.Which of the following shows a cause-effect relationship between its two components?a)Reduction in interest rates and abundance of food commoditiesb)Reduction in energy prices and increase in food commodity pricesc)Injection of liquidity and the drop in investor confidenced)Dipping of US dollar value and the volatility in commodity marketsCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice SSC CGL tests.
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