What Is a Commodity?
The CFTC describes it as a physical good such as a crop or a natural resource, as distinct from a financial instrument.
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1.What is a commodity?
The CFTC describes it as a physical good such as a crop or a natural resource, as distinct from a financial instrument.
2.What does fungible mean in US law?
That is why a barrel of oil needs no brand; what matters is the grade (Uniform Commercial Code).
3.Why is a barrel of crude oil interchangeable but a car is not?
Two cars differ in model, condition and history.
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Sources (6)
- U.S. Commodity Futures Trading Commission (CFTC): Glossary (Commodity, Cash Commodity, Actuals, Grades, Hedger)
- Uniform Commercial Code (USA) § 1-201(b)(18) "Fungible"
- OpenStax: Principles of Economics 3e, Abschnitte 3.2 (Shifts in Demand and Supply)
- Eigene Rechnung: Weizenpreis 100, Anstieg 25 Prozent, Rueckgang (Uebungsaufgabe)
- U.S. Commodity Futures Trading Commission: History of the CFTC, Pre-CFTC Era (Illinois-Charter des Chicago Board of Trade, 1859)
- FAO (Food and Agriculture Organization of the United Nations): FAO Food Price Index (Definition)
Education only. Not financial advice.