Commodities are raw materials or primary agricultural products that can be bought and sold, ranging from grains and metals to livestock and other goods.
A forward contract involves the actual purchase or sale of a specified quantity of a commodity, government security, foreign currency, or other financial instrument at a price agreed upon now, with delivery and settlement at a future specified date.
A medium of exchange is any commodity or product that is universally accepted in a market for the purpose of trade and that functions as a standard measure of value and wealth.
