Practice Set - 1 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

Commodity trading originated from which of the following systems?

Question 2

Soft commodities are generally:

Question 3

Which of the following participants aim to minimize risk?

Question 4

Commodity trading in India began in an organized manner in which year?

Question 5

Which entity guarantees the performance of futures contracts?

Question 6

Electronic spot exchanges improve price discovery by increasing transparency.

Question 7

Speculators participate in commodity markets primarily to:

Question 8

In a barter system, goods are exchanged without the use of money.

Question 9

Which of the following best describes a spot market transaction?

Question 10

Forward contracts are typically traded on:

Question 11

Which of the following is a key economic function of derivatives?

Question 12

Currency appreciation makes imported commodities cheaper.

Question 13

Which of the following is an example of a hard commodity?

Question 14

Commodity prices are not affected by geopolitical events.

Question 15

Futures contracts eliminate counterparty risk completely.

Question 16

Commodity futures contracts are standardized.

Question 17

Interest rates influence commodity prices.

Question 18

In forward contracts, there is no default risk.

Question 19

Hedgers transfer their risk to speculators in derivatives markets.

Question 20

Commodity derivatives are financial instruments whose value is derived from underlying assets.

Question 21

Which of the following exchanges was the first organized futures market?

Question 22

Seasonality has no impact on commodity prices.

Question 23

Which market allows trading contracts for future delivery?

Question 24

Which of the following describes a futures contract?

Question 25

Forward contracts were introduced primarily to address:

Question 26

Arbitrage involves:

Question 27

Which function involves determining prices based on demand and supply?

Question 28

Which participant provides liquidity by quoting both buy and sell prices?

Question 29

Which factor directly affects commodity prices?

Question 30

Practice Set - 1