The following sentences P, Q, R and S form a jumbled paragraph about volatility in global commodity markets. Out of the four options, select the most logical order to form a coherent paragraph.

Introduction / Context:
This question tests the ability to arrange jumbled sentences into a logically connected paragraph. The topic is price volatility and speculative movements in global commodity markets, especially in relation to liquidity, interest rates, and financial conditions. Such questions are common in exams because they measure both comprehension and sensitivity to logical flow, connectors, and cause effect relationships in complex texts.

Given Data / Assumptions:

• P: The recent reduction in interest rates in the US and the injection of liquidity have resulted in investors seeking new avenues such as commodity markets, in view of the turbulence in financial markets and the low returns in treasuries.
• Q: The relatively easy liquidity and low interest rates, by themselves, make holding of inventories attractive and thus induce volatility in commodity markets.
• R: The financialisation of commodity trade and current extraordinary conditions in global financial markets could have influenced the spurt in prices.
• S: The weakening of the US dollar is also advanced as a reason for the recent volatility in commodity markets, including food items.
• We need to select the order that forms a coherent analytical paragraph.

Concept / Approach:
Usually, the best starting sentence in such a set provides a broad overview of the issue, and later sentences supply specific reasons or consequences. Here, R speaks generally about financialisation of commodity trade and extraordinary global financial conditions influencing the spurt in prices. This reads like an umbrella statement. P, Q, and S then elaborate specific mechanisms: P mentions interest rate cuts and liquidity pushing investors into commodities, Q explains how easy liquidity and low rates induce volatility through inventory holding, and S adds weakening of the US dollar as another factor. Therefore, R should come first, followed by a detailed chain P, Q, S that explains different aspects of the same broad theme.

Step-by-Step Solution:

Verification / Alternative check:
Reading RPQS as a single paragraph, we get: first, a general statement that financialisation and extraordinary conditions could have influenced the spurt in prices (R). Second, the reduction in interest rates and injection of liquidity push investors into commodities (P). Third, easy liquidity and low rates make it attractive to hold inventories and hence create volatility (Q). Fourth, the weakening US dollar is also cited as a reason for volatility (S). This sequence moves smoothly from generic overview to specific mechanisms, then to an added factor, which is the classic structure of an analytical paragraph. In contrast, starting with P or Q would feel abrupt, as those sentences assume we already know the bigger story about global financial conditions.

Why Other Options Are Wrong:

• Option A (PRQS): Begins with P, which immediately discusses US interest rates without first establishing why commodity prices are under discussion. R is pushed to second place, making the flow less natural.
• Option B (SPQR): Starts with S, which uses the phrase “also advanced as a reason”, clearly indicating that some earlier reason should have been mentioned, so S cannot logically open the paragraph.
• Option C (QSPR): Starts with Q and then jumps to S, which again uses “also” without any prior reason, leaving the paragraph logically incomplete at the beginning.

Common Pitfalls:
Many candidates focus only on connector words like “also” and “by themselves” and ignore content hierarchy. While connectors are very useful, the main clue here is that R speaks in the widest, most summarising way about financialisation and extraordinary conditions, which is ideal for an opening sentence. Another common mistake is to chain sentences purely by local links, such as choosing Q after P only because both mention low interest rates, without ensuring that the overall paragraph has a clear introduction and conclusion. A good strategy is to identify one broad theme sentence, a set of supporting sentences, and any summarising or additional reason sentences, then arrange them in that logical order.

Final Answer:
The most logical order of the sentences is R P Q S, which corresponds to option RPQS.