Innovation & Change Management Flashcards
7 cards from real Series 3 – The National Commodities Futures Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Innovation & Change Management flashcards as text
A short hedger is most likely to benefit when the basis does which of the following?
Answer: Strengthens
A strengthening basis (cash rising relative to futures) improves the short hedger's result.
If interest rates rise sharply, what generally happens to Treasury bond futures prices?
Answer: They fall
Bond prices move inversely to yields, so futures prices decline.
A market moves from contango to backwardation. What has changed?
Answer: Nearby prices are now above deferred prices
Backwardation means nearby contracts trade at a premium to deferred ones.
A severe drought cuts expected corn production. Other factors equal, what is the likely effect on corn futures?
Answer: Prices rise
Reduced supply with steady demand tends to push prices higher.
What does 'rolling' a futures position mean?
Answer: Closing an expiring contract and opening a similar position in a later month
Rolling maintains exposure by shifting from a near-expiry contract to a deferred one.
When exchanges raise initial margin because volatility increases, what is the main effect on speculators?
Answer: More capital is needed to hold the same position
Higher margin means each contract ties up more funds.
In a futures account that falls below maintenance margin, a margin call generally requires the customer to restore equity to what level?
Answer: Initial margin
Futures margin calls typically require funding back up to the initial margin level.
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Sources & references
Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy
- finra.org — Score release, test dates, test delivery, fees, exam format, passing score · verified Oct 2026
- nfa.futures.org — Eligibility, score validity · verified Oct 2026