one traditional inflation hedge

[English Learner]

Business English Lesson, Advanced Level

ESL/EFL Test #498 "Natural Resources", question 1

Commodities like gold, natural gas and similar natural resources are one traditional ......... hedge: demand typically rises for such commodities, raising their prices to the advantage of their investors.

(a) deflation
(b) depression
(c) inflation
(d) recession

Business English Lesson, Advanced Level

ESL/EFL Test #498 "Natural Resources", answer 1

Commodities like gold, natural gas and similar natural resources are one traditional inflation hedge: demand typically rises for such commodities, raising their prices to the advantage of their investors.

Correct answer: (c) inflation
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what is a natural resourse

[Beeesneees]

Natural resources are resources that occur naturally and are not man made. Gold and gas are examples of resources that occur naturally and are not manufactured.
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