Read the following excerpt from an economic history of agricultural markets:
"While nineteenth-century Chicago grain traders frequently cited telegraphic crop reports as the principal driver behind reduced price volatility in regional wheat markets, archival records reveal that standardized grade specifications within futures contracts, rather than instantaneous news dissemination, were what actually enabled merchants to hedge risks effectively across multi-state shipping corridors."
Which of the following inferences regarding nineteenth-century grain trading is most strongly supported by the excerpt?
- ATelegraphic crop reports had no measurable impact on price fluctuations in any regional agricultural markets during the nineteenth century.
- BStandardized grade specifications were initially created by telegraph companies to streamline market intelligence reports.
- Nineteenth-century grain traders misidentified the primary mechanism that allowed merchants to mitigate risk across multi-state shipping corridors.Cevap
- DArchival records demonstrate that price volatility in regional wheat markets actually increased following the adoption of futures contracts.
- EInstantaneous news dissemination was used by grain merchants primarily to establish uniform grading standards across state lines.
Cevap
The statement that nineteenth-century grain traders misidentified the primary mechanism that allowed merchants to mitigate risk across multi-state shipping corridors.
The sentence explicitly contrasts the belief of grain traders (who credited telegraphic reports for market stabilization and risk reduction) with the findings of archival records (which show that standardized grade specifications in futures contracts actually enabled effective risk hedging). Therefore, it can be strictly inferred that the traders misidentified the primary factor responsible for effective risk mitigation.
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Single-Sentence Inferences