n NISM Certifications
XV NISM Series XV
Medium

Which factor is most likely to influence commodity price movements in the short term?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Inventory Cycle

    Correct answer

  2. B

    Economic Cycle

  3. C

    Monetary Cycle

  4. D

    Secular Trend

Why this is the answer

Inventory cycles reflect short-term supply-demand fluctuations. Changes in stock levels can quickly affect commodity prices, making them the strongest driver of short-term price movements.

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