Deck 1: Commodity Market

Question 1

A ______market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar.

A)commodity
B)cash
C)share
D)banking

Answer 1

commodity

Question 2

Traditionally ____________ has been the largest producers of gold in the world.

A)europe
B)south america
C)south asia
D)south africa

Answer 2

south africa

Question 3

Commodities, which are to be received by a clearing member, are delivered to him in the depository clearing system in respect of depository deals on the respective __________ day as per instructions of the exchange/ clearing house.

A)expiration
B)pay-in
C)settlement
D)pay-out

Answer 3

pay-out

Question 4

By using the currency forward market to sell dollars forward, an _________ can lock on to a rate today and reduce his uncertainty.

A)arbitrager
B)speculator
C)importer
D)exporter

Question 5

All the exchanges, which deal with forward contracts, are required to obtain certificate of registration from the _______________.

A)commodity board of trading
B)commodity exchanges
C)forward markets commission fm
D)government of india

Question 6

This option to give delivery is given during a period identified as _______________________.

A)delivery notice period
B)settlement period
C)delivery period
D)option notice period

Question 7

The first use of derivatives contract was ________________.

A)to manage price uncertainty
B)for speculation
C)for arbitrage
D)speculation

Question 8

A futures contract is nothing but a forward contract that is __________.

A)sold by mutual funds
B)sold by banks
C)traded across the counter
D)exchange traded

Question 9

In matters where the exchange is a party to the dispute, the civil courts at __________have exclusive jurisdiction.

A)delhi
B)mumbai
C)bengal
D)bangolre

Question 10

 Final settlement happens on the ____________.

A)]last trading day of the month
B)last trading day of the week
C)last trading day of the futures contract
D)after selling the shares