Practice Set - 2 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

In a futures contract, the buyer has an obligation to buy the asset at maturity.

Question 2

In a call option, the buyer has the right to sell the asset.

Question 3

Which participant exploits price differences for profit?

Question 4

Which participant provides services like storage and warehousing?

Question 5

Which of the following describes the role of a clearing corporation?

Question 6

Which factor influences commodity prices due to seasonal production cycles?

Question 7

Which of the following is a key benefit of electronic spot markets?

Question 8

Higher interest rates generally increase commodity prices.

Question 9

In a spot market, delivery happens immediately.

Question 10

Which type of commodity includes crude oil and natural gas?

Question 11

Which of the following participants transfers risk in the market?

Question 12

Which of the following best defines derivatives?

Question 13

Which factor includes GDP growth and inflation affecting prices?

Question 14

Which of the following is a function of derivatives markets?

Question 15

Which of the following markets involves customized contracts between two parties?

Question 16

Which of the following participants seeks profit from price movement without owning the asset?

Question 17

Arbitrage opportunities exist for long periods in the market.

Question 18

Which of the following is an example of an agricultural commodity?

Question 19

Commodity prices are unaffected by weather conditions.

Question 20

Which of the following is a feature of forward contracts?

Question 21

Which of the following is true about options contracts?

Question 22

Which of the following is an example of price discovery?

Question 23

Commodity futures contracts are always customized.

Question 24

Speculators usually take physical delivery of commodities.

Question 25

Commodity derivatives markets contribute to economic development.

Question 26

Commodity trading involves only physical goods and not financial contracts.

Question 27

Which entity regulates warehouses for agricultural commodities in India?

Question 28

Futures contracts can be traded before their maturity date.

Question 29

Which of the following functions improves planning for producers and consumers?

Question 30

Practice Set - 2