While discussing the role of commodities as a vehicle for investment, a commentator makes the following statements : Statement 1 : During economic expansions, increasing supply tends to reduce the price of commodities. Statement 2: Investing in commodities can give the investor exposure to fluctuations in production and consumption. Are these two statements correct Statement 1 Statement 2（）①A. Incorrect Correct ②B. CorrectCorrect ③C. CorrectIncorrect
A. ①
B. ②
C. ③
参考答案：A
解析：
Statement 1 is incorrect. During expansions, increasing demand for finished goods causes an in crease in demand for the commodities needed to produce them, resulting in higher prices for commodities. Statement 2 is correct. Commodities can give an investor exposure to the economy’s production and consumption growth, with swings in commodity prices likely to be larger than changes in finished goods prices.