Test Your NISM-Series-16: Commodity Derivatives Mock Tests Knowledge in 5 Minutes

1. Which of the following is included in the definition of 'Securities' under SCRA Act?

A. Debentures and bonds B. Government securities C. Financial Derivatives D. All of the above

2. In ________ system, goods were exchanged between two parties with matching and opposite needs. (NISM workbook)

A. Bullion B. OTC C. Barter D. Monetary

3. ___________ are agreements between two counterparties to exchange a series of cash payments for a stated period of time based on a certain pre-agreed arrangement. (NISM workbook)

A. Options B. Forwards C. Swaps D. Futures

4. _____________ refers to the process of determining commodity price through forces of market demand and supply. (NISM workbook)

A. Law of one price B. Price discovery C. Arbitrary pricing D. Price determination

5. Arbitrage opportunities can exist between _____________. (NISM workbook)

A. Two futures prices B. Futures and options prices C. Spot and futures prices D. All of the above

6. Which of the following macroeconomic factors have an impact on the commodity prices? (NISM workbook)

A. Per capita income B. Growth in industrial production C. GDP growth rate D. All of the above

7. Which of the following ratios are as per the regulatory requirements for production related weights and liquidity related weights while constructing index? (NISM workbook)

A. Maximum 60% each factor B. Minimum 25% each factor C. Minimum 40% each factor D. Equal weight i.e., 50:50

8. Which of the following is correct statement? (NISM workbook)

A. Commodity Indices are based on underlying which devolves on commodity Futures B. Commodity Index is a spot market product. C. Commodity Index Futures are based on underlying which is a continuous series based on Commodity Futures D. Commodity Index Futures are based on underlying which is a Futures devolving on spot commodity

9. _____________ indicates the benefit of owning a commodity rather than buying an index futures contract on that commodity. (NISM workbook)

A. Yield to Maturity B. Current Yield C. Convenience Yield D. Spot Yield

10. If the cost of 10 grams of gold in the spot market is Rs 50,000 and the cost-of-carry is 12% per annum, the theoretical fair value of a 3-month futures contract would be _____ (approximately). (NISM workbook)

A. Rs 51,500 B. Rs 56,000 C. Rs 50,000 D. Rs 52,000