Tuesday, December 20, 2011

Commodity Market Quiz - 1

1. RBDPLNKAK is the symbol for _____________________.
[A]RBD Palm Olein Kakinad
[B]Medium staple cotton Bhatinda
[C]Refined Soya Oil Indore
[D]None of the above

2. Traditionally ____________ has been the largest producers of gold in the world.
[B]South America
[C]South Asia
[D]South Africa

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.

4. If the value of the claim, difference or dispute is up to ___________, then they are to be referred to a sole arbitrator.
[A]Rs.50 Lakh
[B]Rs.10 Lakh
[C]Rs.75 Lakh
[D]Rs.25 Lakh

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

6. OTC derivatives are considered risky because __________________.
[A]they are not settled on a clearing house
[B]they do not follow any formal rules or mechanisms
[C]there is no formal margining system
[D]all of the above

7. 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 (FMC)
[D]Government of India

8. 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

9. The first use of derivatives contract was ________________.
[A]to manage price uncertainty
[B]for speculation
[C]for arbitrage
[D]None of the above

10. To ensure financial integrity and market integrity, the FMC prescribes certain regulatory measures. Which of the following is not a measure prescribed?
[A]Limit on net open positions
[B]Price determination
[C]Special margin deposits
[D]Circuit-filters or limit on price fluctuations

11. 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

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

13. 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]none of the above

14. The open positions of PCMs are arrived at by ____________the open positions of all the TCMs clearing through him, in contracts in which they have traded.

15. A trader requires to take a long gold futures position worth Rs.5,00,000 as part of his hedging strategy. Two month futures trade at Rs.6500 per 10 gms. Unit of trading is 100 gms and delivery unit is one Kg. How many units must he purchase to give him the hedge?
[A]8 units
[B]11 units
[C]5 units
[D]10 units