Commodity Exchange IV

Commerce SSS1 Third Term

WEEK 4

Commodity Exchange IV

Performance Objectives

A student should be able to:

     1. State the benefit of commodity exchange.     

Content

Benefits of Commodity Exchange

The following are the major benefits of commodity exchange in the economic development of a country.

1. Increase in Agricultural Production: Commodity exchange has helped in enhancing and promoting large-scale agricultural production. For example, those engaged in agriculture will be inclined to plant seeds for crops that they know are guaranteed to be sold so long as they achieve minimum standards of quality.

2. Stabilization in Agricultural Product Pricing: This is done by fixing price to be executed in trading at a pre-determined period so as to prevent the…