Commodity basics challenge.
Five quick questions about the units, uses and meaning of commodity data. Every answer includes a short explanation.
Answers and explanations.
Try the quiz first. Then open any question to check the answer and the reason behind it.
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How many US gallons are in one oil barrel?
Choices: 42 · 50 · 100
Show the answer
42. One standard oil barrel is exactly 42 US gallons, about 159 litres.
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Which unit is normally used for precious-metal prices?
Choices: Troy ounce · Litre · Bushel
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Troy ounce. Gold, silver, platinum and palladium are commonly quoted per troy ounce.
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What does a monthly average describe?
Choices: Every trade today · A whole month of observations · A forecast for next month
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A whole month of observations. It summarises the named month; it is neither a live quote nor a forecast.
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Which metal is widely used in electrical wiring?
Choices: Copper · Lead · Tin
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Copper. Copper conducts electricity well and is widely used in cables and motors.
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Why should two price series be indexed to 100?
Choices: To remove their units and compare movement · To predict both prices · To make every price equal
Show the answer
To remove their units and compare movement. Indexing puts differently sized or differently unitised series on a shared starting line.
Learn more about this topic.
- How to read metal prices: units, dates and sources in one price.
- Troy ounce vs ounce: why precious metals use a different ounce.
- Compare commodity prices: see indexing to 100 in action.