Deck 8: Financial Institutions and Commodity Markets: an Overview

Question 1

........................ is an apex institution to coordinate, supplement and integrate the activities of all existing specialised financial institutions.

A)IFCI
B)IDBI
C)RBI
D)SEBI

Answer 1

IDBI

Question 2

Which of the following can be the underlying for a commodity derivative contract?

A)Interest Rate
B)Euro-Indian Rupee
C)Gold
D)NIFTY

Answer 2

Gold

Question 3

Daily mark to market settlement is done ------------

A)Till the date of contract expiry
B)As long as the contract makes a loss
C)On the last day of week
D)On the last trading day of the month

Answer 3

Till the date of contract expiry

Question 4

----------is the actual process of exchanging money and goods.

A)Transfer
B)Settlement
C)Netting
D)Clearing

Question 5

Commodity exchanges enable producers and consumer to hedge their -----------given the uncertainty of the future.

A)seasonal risk
B)profit risk
C)production risk
D)price risk

Question 6

Which of the following is not true about the national level exchanges?

A)Offers online trading
B)Recognised on permanent basis
C)Offers single commodity for trading
D)Volumes higher than regional exchanges

Question 7

----------- Exchanges provide real time, online, transparent and vibrant spot platform for commodities.

A)Electronic Spot
B)Regional
C)Futures
D)Stock

Question 8

----------can only trade through their account or on account of their clients and however clear their trade through PCMs/STCMs.

A)Trading cum Clearing Member
B)Trading Member
C)Commodity Participant
D)Associate Member

Question 9

The minimum net worth requirement for PCM on the NCDEX is-----------.

A)50 Lakh
B)500 Lakh
C)5000 Lakh
D)5 Lakh

Question 10

Members of commodity market can opt to meet the security deposit requirement by way of -- ---------

A)Cash
B)Bank Guarantee
C)Fixed Deposit Receipts
D)All of the above

Question 11

In the case of certain commodities like gold and silver, delivery is staggered over last ------ days of the contract.

A)Two
B)Three
C)Five
D)Thirteen

Question 12

Unit of trading for Wheat at NCDEX is---------

A)1 MT
B)3 MT
C)1 kg
D)10 MT

Question 13

At present how many national commodity exchanges are operating in India?

A)8
B)7
C)6
D)10

Question 14

Regulatory body of commodity market in India is-------------

A)FMC
B)NCX
C)ICE
D)ICRA

Question 15

Forward Market Commission (FMC) established in the year-----------

A)1948
B)1964
C)1953
D)1952

Question 16

FMC merged with SEBI in the year------------

A)1994
B)2008
C)2015
D)2016

Question 17

The year of establishment of National Multi- Commodity Exchange (NMCE) was---------

A)2002
B)2003
C)2004
D)2005

Question 18

-----------is the world's largest exchange in silver and gold

A)NMCE
B)MCX
C)ICEX
D)NCDEX

Question 19

---------------holds 86% market share of commodity exchange in India

A)NMCE
B)MCX
C)ICEX
D)NCDEX

Question 20

Headquarters of Multi Commodity Exchange in India (MCX) is ----------

A)New Delhi
B)Ahmedabad
C)Mumbai
D)Calcutta

Question 21

NCDEX stands for-------------------

A)National Commodity Development Exchange
B)National Commodity and Derivatives Exchange
C)Natural Commodity and Development Exchange
D)None of these

Question 22

In ------------ NSE and BSE launched trading in commodities.

A)2016
B)2017
C)2018
D)2015

Question 23

The oldest Commodity market in India is---------

A)NMCE
B)MCX
C)ICEX
D)NCDEX

Question 24

In the year 2018 NMCE merged with -----------

A)UCX
B)MCX
C)ICEX
D)NCDEX

Question 25

ACE Derivatives Exchange Ltd is the commodity exchange developed in---------

A)America
B)Australia
C)Afghanistan
D)None of these

Question 26

Which of the following statements is false?

A)A bond issuer must pay periodic interest.
B)Bond prices remain fixed over time.
C)Bonds carry no corporate ownership privileges.
D)A bond is a financial contract.

Question 27

Which of the following statements is true?

A)Low inflation is expected to have a negative effect on bond prices.
B)Generally speaking, bonds are riskier than common stocks.
C)Bonds are usually less liquid than stocks.
D)A bondholder repays principal when the bond matures.

Question 28

Most bonds:

A)are money market securities.
B)give bondholders a voice in the affairs of the corporation.
C)are interest-bearing obligations of governments or corporations.
D)are floating-rate securities.

Question 29

Which of the following is not an advantage of investing in bonds?

A)Bonds have unlimited profit potential.
B)Bond investments are relatively safe from large losses.
C)Bonds are good sources of current income.
D)Bondholders receive their payments before shareholders can be compensated.

Question 30

Corporations borrow for the short term by issuing:

A)corporate bills.
B)corporate bonds.
C)commercial paper.
D)bankers' acceptances.

Question 31

What is used to quote the rates on Eurodollar deposits?

A)Discount rate.
B)Federal funds rate.
C)Repo rate.
D)LIBOR.

Question 32

Which of the following provides income that is fully exempt from taxation for the individual investor?

A)Municipal bonds.
B)Preferred stocks.
C)Treasury notes.
D)Treasury bills.

Question 33

Which of the following is a residual claim on a firm's assets?

A)Preferred stock.
B)Common stock.
C)Preference shares.
D)Participating preferred stock.

Question 34

Which of the following occurs four trading days before the date of record?

A)Distribution date.
B)Payment date.
C)Declaration date.
D)Ex-dividend date.

Question 35

Which of the following types of assets is least risky?

A)Short-term corporate bonds
B)Long-term corporate bonds.
C)Stocks.
D)Options and futures.

Question 36

Which of the following types of assets offers the highest expected return?

A)Stocks.
B)Long-term government bonds.
C)Options and futures.
D)Long-term corporate bonds.

Question 37

Which of the following types of financial assets represents a creditor relationship with an entity?

A)Stocks.
B)Options.
C)Futures.
D)Bonds.

Question 38

Which of the following sequences lists financial assets from least risky to most risky?

A)Stocks, bonds, derivatives.
B)Bonds, derivatives, stocks.
C)Derivatives, bonds, stocks.
D)Bonds, stocks, derivatives.

Question 39

Which of the following sequences lists financial assets from lowest expected return to highest expected return?

A)Bonds, stocks, derivatives.
B)Bonds, derivatives, stocks.
C)Stocks, bonds, derivatives.
D)Derivatives, stocks, bonds.

Question 40

Which of the following types of assets represents ownership interest in a corporation?

A)Bonds
B)Stocks.
C)Futures.
D)Options.

Question 41

Financial assets are also called:

A)securities.
B)real assets.
C)tangible assets.
D)physical assets.