MCQs On Commodities-For Reference and Enhancing Knowledge

Sr. No.
Queries Answer Choices

A B C D Correct Answer
1 Who regulates the commodity derivatives market in India RBI IRDAI PFRDA SEBI SEBI
2 Since which year SEBI has been regulating the commodity 1992 1953 2015 1956 2015
derivatives trading in India
3 Whether SEBI regulates spot market commodity trading Yes No Not sure Probably Yes No
also
4 When did BSE & NSE launched commodity derivatives 2018 2017 2016 None of these 2018
trading on their platform
5 What is Arbitrage entering into sell and purchase entering into purchase simultaneously entering entering into sell simultaneously entering
transaction in spot market transaction in spot & into sell and purchase transaction in spot and into sell and purchase
futures market transactions in two or futures market transactions in two or
more markets more markets
6 Please read the given statement and then select the right False 1 partially true Not sure True
option as your answer:
"A forward contract is not settled until the end of life and do
infact lead to delivery of the underlying asset"
7 Which of the given factors affect the prices of agri Weather condition agriculture production changes in import & all the three All the three
commodities? export policies
8 Besides price risk, which are the risks that exist in spot Delivery risk Transportation risk Credit risk all the three all the three
market?
9 Who is obligated to provide liquidity in the derivatives Position trader Day trader Market maker Arbitragers Market maker
market by giving two way quotes all the time
10 Future price higher than the spot price, is called as conversion Divergence contango Backwardation Contango
11 Spot price higher than futures price is called as conversion Divergence contango Backwardation Backwardation
12 In which type of past system, goods were exchanged Barter OTC Monetary Option Barter
between two parties with mutually coincident needs
13 Demand for gold is relatively elastic perfectly inelastic inelastic perfectly elastic relatively elastic
14 Which Exchange launched futures trading in base metal NCDEX NSE MCX BSE MCX
index
15 Which commodity from the given options is included in copper steel brass tin copper
METLDEX
BSE - INTERNAL
Sr. No. Queries Answer Choices
16 In the past, which was the vibrant exchange dealing in Spices and Oilseeds Exchange Kanpur Commodity Hapur Commodity none of these Spices and Oilseeds
turmeric futures ltd., Sangli Exchange Exchange Exchange ltd., Sangli
17 Which Government initiative/policy announcement gave the National Agriculture Policy, National Agriculture land reforms encouragement to co- National Agriculture
first major impetus to agricultural futures market? 2000 Market (eNAM) operative joint farming Policy, 2000
18 In India, name the commodity in which futures trading was Rice,1888 Copper, 1870 Maize ,1877 Cotton, 1875 Cotton ,1875
started first and when
19 Prior to Independence, which were the commodities in Maize,rice,bajra Cotton, Jute, copper,steel,zinc Urad Tur, Chana Cotton, Jute, Gold,
which futures trading took place Gold,oilseeds, wheat oilseeds, wheat
BSE - INTERNAL
20 Among these associations, which association was set up East India Jute trade Gujarati Vyapari Mandal Bombay Cotton Trade Chamber of Commerce, Bombay Cotton Trade
first for futures trading Association Association Ltd Hapur Association Ltd
21 Where and when futures trading in oilseeds was introduced Chennai -1889 Bombay1900 Ahmedabad 1887, Indore1886 Bombay1900
22 Where and when futures trading in wheat was introduced Hapur 1913 Bombay 1915 Hissar1911 Rohtak 1914 Hapur 1913
23 Where and when futures trading in raw jute and jute Gwalior1911 Latur 1916 Kolkata 1912 Sirsa 1910 Kolkata 1912
products was introduced
24 Post independence, through which act commodity Forward Contracts Bombay Forward Defence of India Act, none of these Forward Contracts
derivatives trading was regulated in India until 2015? (Regulation) Act, 1952 Contracts Control 1915 (Regulation) Act, 1952
Act,1947
25 Since which year Bullion market has been functioning in 1890 1920 1915 1907 1920
Bombay
26 Among these, which is a key feature of the modern Demutualisation access to a limited number open out cry no loss no profit Demutualisation
exchanges of clients and members
27 Among the given options, which Government/regulatory Individual State Government Central Government RBI Local bodies such as Individual State
bodies regulates spot market trading in agricultural municipalities and gram Government
commodities panchayats
28 In which year, Government of India issued licences for the 2005-06 2000-01 1999-2000 2002-03 2002-03
first time for setting up national level multi commodity
exchanges?
29 Please read the given statement and then select the right False Partially true 1 Not sure True
"Securities Contract(Regulation ) Act, 1956 empowers
SEBI to grant recognition to stock exchanges in India"
30 Which among the given options is a key mandate for SEBI? Regulation of securities protect the interest of Promote the all the three all the three
market investors development of
securities market
31 In which year Electronic mode/platform for lodging and 2010 2011 2012 2014 2011
tracking complaints by the investors
(SCORES) was launched
BSE - INTERNAL
32 Which among the given options, is not a mandatory e-mail address Name & address PAN
requirement for lodging complaints on SCORES?
Aadhaar Number Aadhaar Number
33 Which is major benefit of SCORES? Reduces the turnaround Available 24*7 all the three all the three
Speedy redressal
time
34 What is a limit order gets executed at specific price gets executed at current gets executed at best none of these gets executed at specific
market price available price price
35 Please read the given statement and then select the right False partially true True Not sure True
"Stop-loss orders are good means of protecting one's profit
or limiting one's loss, while waiting for market to recover"
BSE - INTERNAL
45 Which is the oldest benchmark or reference gold price for Bombay Bullion Association LBMA MCX NCDEX Bombay Bullion
stakeholders in India? Association
46 What is a derivatives contract? Derivatives are financial It is spot contract contractual obligations none of these Derivatives are financial
contracts which derive their contracts which derive
value from an underlying asset their value from an
underlying asset
47 What is the role of commodity derivatives market? Assists,regulates,or controls Facilitating buying and Providing logistic promoting OTC markets Assists,regulates,or
the business of buying ,selling selling in spot market services and other controls the business of
or dealing only in commodity facilities buying ,selling or
derivatives dealing only in
commodity derivatives
48 What has been set up by regulator and stock exchange to manual price ticker boards electronic price ticker electronic hedging electronic risk electronic price ticker
provide rural farmers access to real time prices boards boards management boards boards
49 One of the key parameters of suitability of commodity for fairly and freely traded available on international should be in demand in demand from HNI fairly and freely traded
futures trading is that it should be exchanges from financial sector
50 At the time of designing a futures contract, parameters are the physical or cash market OTC market international spot international derivatives the physical or cash
based mainly on the practices being followed in market market market
51 Among these,which is also referred to as physical market or OTC market electronic market spot market forex market spot market
cash market?
52 When was the first organised commodity futures market 1874 1867 1875 1888 1875
started in India?
53 In India, National Board of Trade was recognised as vibrant Soy complex futures Rapeseed complex futures sunflower seed complex groundnut complex Soy complex futures
exchange for trading in futures futures
54 What is cartelisation? A group of traders who Buyers and sellers A group of buyers A group of sellers A group of traders who
control supply and manipulate negotiate the price manipulate the price manipulate the price control supply and
price in their favour manipulate price in their
favour
BSE - INTERNAL
57 What is E-Auction? An e-auction is a transaction Action takes place Action takes place None of these An e-auction is a
between sellers (the between buyers and sellers between buyers and transaction between
auctioneers) and bidders in the APMC mandi sellers in the market sellers (the auctioneers)
(suppliers in business to yard and bidders (suppliers in
business scenarios) that takes business to business
place on scenarios) that takes
an electronic marketplace. place on
an electronic marketplac
e.
58 What is churning It is a practice of a broker Reasonable trading by Keeping position None of these It is a practice of a
overtrading in a client's broker to protect client outstanding for broker overtrading in a
account for a purpose of interest favourable price client's account for a
generating commission movement purpose of generating
commission
59 What is cornering? To infuse supply in the market To secure such relative To protect the interest of To protect the interest of To secure such relative
and save interest of seller control of commodity that buyers from being buyers and sellers control of commodity
its price can be indulged in delivery against unfavourable that its price can be
manipulated default price movement manipulated
60 Trader, who holds an investment for an extended period of hedger position trader market maker None of these Position trader
time with the expectation that it will appreciate in value, is
called
61 What is round turn? It is completed transaction It is incomplete transaction It is roll over from near none of these It is completed
involving both a purchase and of sale purchase month contract to far transaction involving
liquidating sale or a sale month contract both a purchase and
followed covering purchase liquidating sale or a sale
followed covering
purchase
62 Among these, which is not the parameter of efficient free entry & exit large number of buyers information asymmetry no price opacity information asymmetry
commodity derivatives market? and sellers
BSE - INTERNAL
63 What is kerb trading? Trading that takes place after Trading that takes place Trading takes halt Stock exchanges Trading that takes place
official hours between official hours without any official intervene and stop after official hours
reasons trading
64 What is liquid market? A market where selling and market where only sellers market where only A market where selling A market where selling
buying is accomplished with are dominant buyers are dominant and buying is and buying is
minimal price change accomplished with accomplished with
maximum price change minimal price change
65 What is illiquid market? A market where selling and A market with high A market with entry and all the three all the three
buying is accomplished with impact cost exit barriers
maximum price change
66 What is representative or basis price? A price reflecting general Price reflecting rising Price reflecting falling Price reflecting trend of A price reflecting
price trend of a commodity trend of a commodity trend of a commodity a producing hub general price trend of a
commodity
67 What is volume? Total transaction of one Total transaction of Total transaction up to none of these Total transaction of one
trading day preceding day and 5:00 pm prior to closure trading day
subsequent day of trading day
68 Please read the given statement and then select the right False partially true True Not sure True
"In technical analysis, volume is used to confirm different
types of price pattern"
69 What is open interest? Total no. of outstanding All the outstanding Total no. of outstanding Total no. of outstanding Total no. of outstanding
contracts of buy and sell have contracts of buy and sell contracts of buy and sell contracts of buy and sell contracts of buy and sell
been entered into and not yet are squared off are fulfilled with are fulfilled with cash have been entered into
liquidated by an offsetting delivery settled and not yet liquidated by
transaction or fulfilled by an offsetting transaction
delivery or fulfilled by delivery
70 Open interest of 1000 means 1000 buyers and 100 sellers 100 buyers and 1000 1000 buyers and 1000 1000 buyers and 1000 1000 buyers and 1000
on that date sellers on that date sellers on that date sellers on preceding sellers on that date
date
71 Among these, which are the forms of clearing members in self clearing member trading cum clearing professional clearing all the three all the three
commodity derivatives market member member
BSE - INTERNAL
72 Among these, which is incorrect regarding futures contract? futures contract are futures contracts are Commodity futures Commodity futures futures contracts are
agreements made today to buy customised and are traded help value chain facilitates seasonal customised and are
or sell an asset in future at bank desks participants to protect supply chain traded at bank desks
themselves against management
unpredictable changes in
prices
BSE - INTERNAL
73 Among these options, which action will offset a long sell any futures contract, Hold a futures contract Sell futures contract that buy any futures Sell futures contract that
position in a futures contract that expires in June? regardless of its expiration until it expires expires in June contract, regardless of expires in June
date its expiration date
74 Which among the given options, causes the futures price of Higher expected spot price for Loss in income while Lower expected spot Higher income received Higher expected spot
an asset to increase, everything else held constant? the underlying asset carrying underlying asset price for the underlying while carrying price for the underlying
asset underlying asset asset
75 Among these, which statement about gross domestic GDP is composed of The most widely-used GDP counts goods and GDP is the value of all GDP counts goods and
product (GDP) is wrong? consumption, investment, measure of the economic services produced by goods and services services produced by
government spending, and net health of the overall nationals in a foreign produced in an economy nationals in a foreign
trade. economy is GDP. country, and not goods over a particular time country, and not goods
and services produced period and services produced
by foreigners in the by foreigners in the
domestic country. domestic country.
76 What is inflation? decrease in value of money Increase in value of money increase in purchasing increase in economic decrease in value of
power activity money
77 Among the given regulators, who is responsible for SEBI Ministry of Finance State Government Reserve Bank of India Reserve Bank of India
managing inflation?
78 Among these, which is incorrect method to control control of money supply increase in tax rates decrease in interest rate wage control decrease in interest rate
inflation?
79 What is recession? Higher purchasing power decline in economic positive real gross increase in consumer decline in economic
activity spread across the domestic products demand activity spread across the
country for two (GDP) rate country for two
consecutive quarters consecutive quarters
80 among these, which is an example of fiscal policy Changing reserve requirement Controlling money supply Tax increase Consumer spending Tax increase
81 Hedging through futures contracts increases risk of loss if prices eliminates profit increases risk of loss if ensures profit eliminates profit
fall maximization potential prices rise maximization potential maximization potential
82 Which among the given options, is not a regulator in India? SEBI RBI CFTC IRDA CFTC
BSE - INTERNAL
83 Please read the given statement and then select the right False Partially true True Not sure true
"Market integrity, Financial integrity and Customer
protection are the key to success of commodity derivatives
market"
84 A party aggrieved by the appellate arbitral award may file Court of Law SEBI Stock Exchange Clearing Corporation Court of Law
an application to the
BSE - INTERNAL
85 What is E-registry? It maintains electronic records A physical statement of Confirmation by None of these It maintains electronic
of ownership of goods deposit of goods in clearing corporation records of ownership of
warehouse about deposit of goods goods
in warehouse
86 What is NWRs (Negotiable warehouse receipt)? Negotiable warehouse receipt Receipt given by Receipt given by Receipt given by Negotiable warehouse
which effects transfer of commission agent through commodity exchange clearing corporation receipt which effects
ownership of such goods by APMC transfer of ownership of
electronic process such goods by electronic
process
87 Which is not the objective of introduction of eNWRs? To replace paper based hassles free transfer To facilitate easy To promote role of To promote role of
(Electronic Negotiable warehouse receipts)? warehouse receipt which availability of loan to moneylenders moneylenders
caused substantial problem farmers through banks
88 Who is monitoring the repository system? WDRA (Warehousing SEBI RBI state government WDRA
(Development & Regulatory
Authority,2010)
89 When WDRA issued the guidelines for introduction of Oct-16 Nov-14 Mar-10 Apr-08 Oct-16
electronic negotiable warehouse receipts(eNWRs)
90 Who incorporated National E-Repository Ltd (NERL) ? NCDEX MCX NSE BSE NCDEX
91 Who among these is not user of NERL? moneylenders Repository participants Banks Clearing moneylenders
member/Clearing
corporation
92 Which among the given options, represents major Creation of e-NWRs Transfer of e-NWRS Security and authenticity All the three All the three
responsibility of a repository? between users of the of e-NWR
repository
93 Among these, which is not activity of repository account opening Off market transfer pledge stocks with withdrawal intimation pledge stocks with
participants? money lenders money lenders
BSE - INTERNAL
94 How repository works? Repository application is web Clearing corporation Repository works under None of these Repository application is
based application, which monitors repository work web based network of web based application,
provides end to end solution stock exchange which provides end to
for all the transaction related end solution for all the
to electronic warehouse transaction related to
receipt electronic warehouse
receipt
95 Which stock exchange migrated Comtrack to NERL NSE MCX ICEX NCDEX NCDEX
BSE - INTERNAL
1 On exchange-traded Commodity announced and discovered and discovered and discovered and discovered and disseminated
futures, the prices of commodities are disseminated disseminated at the end of disseminated at regular disseminated from from time to time
continuously the day time interval time to time
2 Hedging is price risk management little or no exposure to an exposure to the an exposure to the none of these an exposure to the physical
mechanism that is used by a large physical commodity financial market physical commodity commodity
number of stakeholders who have
3 In an efficient futures market the spot diverge at the time of converge at the time of converge at the time of none of these converge at the time of expiry
and futures prices expiry of contracts expiry of contract squaring off contract of contract
4 What are the major benefits of futures price instability or stability in the absence of price fluctuation or to cover price risk to cover price risk against the
trading for farmers and farming increased price predictable market increased price against the unpredictable changes in
community? unpredictability condition unpredictability unpredictable prices
changes in prices
5 Interlinked international commodity local market segmented market regional market global market global market
market across continents are the drivers
of strong and efficient
6 The process of protecting oneself Arbitraging hedging investing None of these hedging
against unpredictable changes in prices
by shifting price risk to some one else
is called
7 National level multi commodity 1999 2001 2002 2003 2003

exchanges like MCX & NCDEX came
into existence in
8 What is deliverable grade The standard grade of Different varieties of the The varieties that have None of these The standard grade of
commodities specified commodity available in been specified as commodities specified in
in contract additional delivery centres AGMARK grade can contract specification, which
specification, which that can be delivered be deliverable against can be complied while
can be complied while against futures contract the futures contract delivering against futures
delivering against contract
futures contract
9 Please read the given statement and false partially true 1 Not sure 1
then select the right option as your
answer:
"Commodity derivatives market is
based on principles of perfect
competition"
BSE - INTERNAL
10 What do you understand by circuit It is trading halt of 30 It is a system of planned It is trading halt of 15 It is trading halt of It is a system of planned
breaker? minutes trading halt and price minutes without 20 minutes with trading halt and price limit
limit designed to provide cooling off cooling off designed to provide a cooling
a cooling off period off period during time of
during time of volatility volatility
11 Please read the given statement and True partially true false Not sure True
answer:
"A futures contract is a legally
binding agreement between the buyer
and the seller, entered on Stock
Exchange, to buy or sell a specified
amount of an asset, at a certain time in
the future, for a price that is agreed
today".
12 Among these, which does not fall ready futures forward option ready
under derivatives contract
13 What are the underlying in derivatives commodities currencies equities all the three all the three
contract
14 Please read the given statement and True partially true 0 Not sure True
answer:
"A forward contract is a customizable
derivative contract between two parties
to buy or sell an asset at a specified
price on a future date".
15 What is basis in derivatives contract Difference between Futures price is equal to Futures price is more Spot price is Difference between spot price
spot price and futures spot price than spot price higher than futures and futures price is known as
price is known as the price the basis
basis
16 If spot price of 10g of gold on April -90 +110 80 85 -90

29, 2019 was 22175, Whereas the June
2019 gold futures contracts on MCX
was trading at 22265. What is the value
of basis?
17 When futures contract approaches increases decreases remains constant decreases initially decreases
maturity , the cost of carry and then increase
BSE - INTERNAL
18 Supply and demand factors that affect Production import &export Consumption All the three All the three
commodity prices include
19 Technical analysis involves forecasting demand & supply behavioural study of expert analysis of price perception of behavioural study of
of futures price movements based on situation historical price movement movements traders and client historical price movement
20 Which contract is an agreement Forward Futures option warrant Forward

between two parties to buy or sell the
underlying asset at a future date, at
current date's pre agreed price
21 Which contract is an agreement Futures Forward option swap Futures

between two parties to buy or sell the
underlying asset at a future date, at
today's futures price
22 Which is not correct concerning futures entails an obligation contract price is set at the gains and losses are contracts are gains and losses are recorded
contract? rather than an option beginning of the contract recorded at contract exchange traded at contract expiration
expiration
23 The process of marking futures The profitability of the The amount of The profit and losses to The contracts are The profit and losses to be
contract to market means contract is locked from commodity to be be debited/credited closed out as soon debited/credited daily
the onset of the delivered changes as price daily as they become
contract changes unprofitable
24 Please read the given statement and false partially true 1 Not sure true
answer:
"The seller of a forward contract is
obligated to sell the underlying asset
when the contract expires"
25 Margin imposed on both long and short Initial margin Additional margin Delivery margin Special margin Additional margin
sides over and above the other margins
is called
26 Who is required to monitor market brokerage house traders association brokers association stock exchange stock exchange
abuses such as circular trading , price
rigging, and price manipulation
according to the self governing
regulation requirement
BSE - INTERNAL
27 Trader Work Station (TWS) is Offline trading online trading platform to online trading platform online trading to online trading platform to
platform to facilitate facilitate placing of buy to clear buy and sell facilitate squaring facilitate placing of buy and
placing of buy and sell and sell orders orders up rates sell orders
orders
28 Proprietary trade is denoted by the INST OWN CLI PRO OWN

symbol
29 A type of a order allows one to buy or Good Till cancelled Day order Immediate or cancel End of session Immediate or cancel order
sell a contract as soon as order is order order order
released in the system, if it does not
find the match , it is removed from the
system
30 As against OTC market, commodity Guarantees delivery of Guarantees delivery of assists in delivery but does not guarantee Guarantees delivery of
derivatives exchange products in deliverable product in all contracts does not guarantee it delivery of products in deliverable
contracts products contracts
31 Depositors are required to pay to the storage and assaying pest control insurance all the three all the three
warehouse owner the applicable
charges for
32 Which among these does the most to credit checks for both Flexible delivery Marking to market High liquidity Marking to market
reduce default risk for futures contracts buyer and seller arrangement
33 Commodity Index trading is an Portfolio of portfolio of physical portfolio of financial none of these Portfolio of commodities
instrument that derives its value from commodities commodities instruments that include
underlying commodities
34 Please read the given statement and false partially true 12/31/1899 Not sure true
answer:
"The convenience yield reflects the
market expectations concerning the
futures availability of commodity"
35 What is short hedge selling futures buying futures contract Simultaneously buying Simultaneously selling futures contract
contract anticipating anticipating price would and selling futures buying and selling anticipating price would fall
price would fall rise contract cash contract
36 What is long hedge buying futures Simultaneously buying selling futures contract selling futures buying futures contract
contract anticipating and selling cash contract anticipating price contract anticipating price would rise
price would rise would rise anticipating price
would fall
37 Who is the regulator for approving SEBI Government of India Team of Commodity Niti Ayog SEBI
contract framework of commodity Experts
derivatives contracts to stock
exchanges
BSE - INTERNAL
38 Amongst the given options, which one futures contracts are Futures contracts allow Futures contracts are Futures contracts Futures contracts allow fewer
is not correct? marked to market fewer delivery options more liquid than are traded on delivery options than forward
than forward contracts forward contracts financial exchange contracts
39 As per SEBI guidelines, each stock only Exchange owned registered by WDRA owned by WSP only registered by registered by WDRA
exchange is required to accredit SEBI
warehouses
40 Who is responsible to exercise robust Commission agent warehouse service Clearing corporation repository Clearing corporation
mechanism to ensure good delivery provider(WSP)
41 Please read the given statement and False 1 partially true Not sure True
answer:
"A warehouse service provider can
be accredited with more than one
exchange"
42 Under the staggered delivery On the same day on the next day on the expiry date on T+2 day on T+2 day
mechanism , a buyer has to take
delivery from prescribed delivery
centre ----
43 For a new long futures position taken The buyer has incurred The Buyer has made Seller has incurred an The seller can ask The buyer has incurred MTM
during the day, if the closing price at MTM loss MTM gain MTM loss more premium loss
the end of the day is lower than his from buyer
transaction price
44 For a new short futures position taken The seller has incurred The seller has made buyer has incurred The buyer can ask The seller has incurred MTM
during the day, if the closing price at MTM loss MTM gain MTM loss more premium loss
the end of the day is higher than his from seller
transaction price
45 Please read the given statement and false partially true 1 Not sure true
answer:
"Derivatives markets exert positive
influence on the efficiency of the
markets of the underlying asset"
46 Which is a type of risk that is generally Commodity price risk Seasonality Geopolitical risk none of these Seasonality
faced by the commodity stockists?
47 What is a commodity price index? It is weighted average It is simple average of Moving average of moving average of It is weighted average of
of selected commodities produced in selected commodities commodities selected commodities
commodities the country produced in the
country
BSE - INTERNAL
48 Please read the given statement and false 1 partially true Not sure false
answer:
"Forward contracts are standardized in
nature"
49 Who are the participants in commodity farmers/processors arbitragers hedgers All the Three All the Three
derivatives trading
50 Which one from among the given large demand and Homogeneity & No control over supply government control government control on prices
options, is not basic condition for supply standardization on prices
suitability of commodity for futures
trading
51 What purposes are served by the logistics Grading storing and assaying all the three all the three
commodity market ecosystem?
52 Apart from the price risk reduction certainty over the adjust cropping patterns opt for higher revenue All the three All the three
what are the other benefits of hedging planting cycle crops
53 Under which contract, payment and Ready Futures Option swap Ready
delivery happen immediately?
54 Which among the given options, is not Limit on open position daily Price fluctuation Additional delivery Initial additional delivery centre
a risk parameter covered in the contract limit centre margin/extreme
specification? loss margin
55 From whom spot prices are polled by Commission agent physical market yard market makers empanelled polling empanelled polling
stock exchanges participants participants
56 What is pay-off? pay off refers to profit pay off refers to both Pay off refers to loss Pay off refers to pay off refers to profit or loss
or loss in trade profit and loss in trade profit in trade
57 Which is the correct definition of a When one enters into a When one enters into a When one enters into a When one enters When one enters into a
long position? contract to buy goods contract to sell goods at contract to buy goods into a contract to contract to buy goods at
at futures price then it futures price then it at current price then it sell goods at futures price then it means
means taking a long means taking a long means taking a long current price then taking a long position
position position position it means taking a
long position
58 Which is the correct definition of a When one enters into a When one enters into a When one enters into a When one enters When one enters into a
short position? contract to sell goods contract to buy goods at contract to sell goods at into a contract to contract to sell goods at
at futures price then it futures price then it current price then it buy goods at futures price then it means
means taking a short means taking a short means taking a short current price then taking a short position
position position position it means taking a
short position
BSE - INTERNAL
59 What is meant by notified commodities Central Government State Government has Certain free The commodities Central Government has
has notified allowed futures trading in commodities wherein only notified commodities in
commodities in which certain metal contract TSD/NTSD which stock exchanges are
stock exchanges are under jurisdiction of state contracts can be permitted to trade in terms of
permitted to trade in boundary traded provisions of SCRA
terms of provisions of
SCRA
60 How many commodities are currently 100 91 120 125 91

notified?
61 Please read the given statement and true partially true 0 Not sure False
answer:
"Whether it is correct to state that a
party with a long position in a futures
contract can directly ask the party with
the short open position to deliver the
underlying asset"
62 Which among the given options, are Patent Trademark Commodities Brand Commodities
examples of tangible assets? Bullion/metals/wheat Bullion/metals/wheat
63 Among these, who does not Hedgers gamblers Arbitragers All the three gamblers
participate in commodity derivatives
market?
64 Hedgers are represented by Day trader commercial producers, market maker Position trader commercial producers,
processors, exporters and processors, exporters and
importers importers
65 Which among the given options, is the To earn risk less profit To manage spot market To take price risk None of these To manage spot market price
objective of a hedger? price risk risk
66 What is prime objective of arbitrager? To manage spot To earn riskless profit by To transfer price risk None of these To earn riskless profit by
market price risk exploiting price exploiting price differentials
differentials across across markets or exchanges
markets or exchanges
67 Please read the given statement and true partially true 0 Not sure False
answer:
"Is the statement futures contracts
are not marketable instruments"
68 Among these, which is not a party to party No collateral Under control of serves as risk serves as risk management
characteristic of Spot market? contract/customised respective state management tool tool
government
BSE - INTERNAL
69 Among these, which is not a underlying is underlying market is Demat settlement underlying supply Demat settlement
characteristic of commodity derivatives Standardised as per fragmented, price opacity is uncertain,
market? Exchange estimated
specification. Has
expiry date
70 Which among the given options, is not price risk management price signal facilitating no market access pledge financing no market access
a benefit of commodity derivatives selling decision through
trading? warehousing and
banks network
71 Which among the given options, is a Opening Trading Should be trading in Should have adequate Should have Opening Trading Account
prerequisite for starting trading in Account with a SEBI physical market stock in experience of with a SEBI registered stock
commodity derivatives market? registered stock broker warehouse/designated trading on broker and completing the
and completing the vault Regional exchange process of Know Your Client
process of Know Your platform (KYC)
Client (KYC)
72 What is trading time of Agri and Agri 9:00 am to 11: 30 pm 09:00 am to 3:30 pm 9:00am to 9:00pm 09:00 am to 5:00 9:00am to 9:00pm
processed commodities on the stock pm
exchanges?
73 What is trading time of non Agri 9:00am to 10:30pm 9:00am to 11:30pm 9:00am to 10:30pm 9:00 am to 9:00am to 11:30pm
contracts on stock exchanges /11:50pm /11:55pm /11:00pm 11:30pm /11:45pm /11:55pm
74 What are the various types of costs Broker charges Commodity transaction Stock Exchange All the three All the three
associated with trading in commodity charges transaction charges
derivatives market
75 What is a benchmark price? It is producing centre It is base price for It is main marketing It is a price It is base price for
price establishing agreed price centre price disseminated from establishing agreed price in a
in a contract APMC contract
76 What is a contract note? It is evidence of trade It is evidence of trade It is evidence of trade It is agreement It is evidence of trade done by
done by the stock done by the client done by the stock between the stock the stock broker on behalf of
broker on behalf of the broker on his own broker and the the client
client account stock exchange
77 What is meant by net bought position? Long position Short position bull spread bear spread Long position
78 What is meant by net sold position? Long position Short position bull spread bear spread short position
79 At time of expiry (due date) the rolled over cash settled credit settled none of these cash settled
outstanding contracts not settled are
80 Explain price discovery Determination of Determination of prices of Determination of prices Determination of Determination of prices of
prices of commodity commodity by buyer of commodity by seller prices of commodity by market forces
by market forces commodity by
either buyer or
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seller
81 What benefits are derived from only price discovery only price risk both none of these both
commodity derivatives trading :i) Price management
discovery ii) Risk Mitigation
82 Would additional margin be levied for No As per situation Yes Not sure YES
deliverable position
83 What is the need for regulating To protect and To ensure fairness and To carry out clearing all the three all the three
commodity derivatives market? promote the interest transparency in trading and settlement
of stakeholders and functions effectively
investors
84 Compulsory delivery is recommended facilitate threat of increase supply in spot increase demand from promote sharing facilitate threat of delivery
so as to delivery market the end user service
85 What do you achieve by threat of The threat of delivery The threat of delivery The threat of delivery The threat of The threat of delivery induces
delivery? induces the augments supply of the supports backwardation delivery supports the convergence of spot and
convergence of spot commodity in the spot in futures prices contango in ready futures prices through
and futures prices market market arbitrage process.
through arbitrage
process.
86 What is staggered delivery period? Delivery in phased Delivery in phased Delivery in phased None of these Delivery in phased manner
manner prior to 5 days manner prior to 11 days manner after 5 days of prior to 5 days of the expiry
of the expiry of the of the expiry of the the expiry of the of the contract
contract contract contract
87 What types of risk do the participants Liquidity risk Operational risk credit risk All the three All the three
face in commodity derivatives market
88 what is credit risk Credit risk arises on Credit risk arises on Credit risk arises on none of these Credit risk arises on account
account of default by account of default done account of default done of default by counterparty.
counterparty. by broker member by client
89 Why credit risk is almost zero clearing corporation Regulator takes the Member takes the None of these clearing corporation takes
takes responsibility responsibility for the responsibility for the responsibility for the
for the performance of performance of contracts. performance of performance of contracts.
contracts. contracts.
90 What is market risk It is the risk of loss on Buyer 's loss due to rising seller's loss due to loss for both buyer It is the risk of loss on
account of adverse prices falling prices and seller account of adverse movement
movement of price. of price.
91 What is liquidity risk Buyer is unwilling to It is a risk because of Seller is unwilling to None of these It is a risk because of which
trade which making unwinding trade making unwinding of
of transactions difficult, if transactions difficult, if the
the market is illiquid market is illiquid
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92 What is legal risk Risk on account of Uncertainty about trading uncertainty about none of these Risk on account of
uncertainty in the norms WDRA law uncertainty in the
applicability or applicability or interpretation
interpretation of of contracts, laws or
contracts, laws or regulations or due to
regulations or due to uncertainty and complexities
uncertainty and relating to successful delivery
complexities relating of stocks of specified quality.
to successful delivery
of stocks of specified
quality.
93 What is operational risk Inadequate corpus to risk arising out of some limited warehouse none of these risk arising out of some
pay settlement operational difficulties, capacity to store the operational difficulties, like,
obligation like, failure of electricity, goods failure of electricity,
transporters strike etc. due transporters strike etc. due to
to which it becomes which it becomes difficult to
difficult to operate in the operate in the market.
market.
94 What are the different types of margins Initial Margin Extreme loss margin Special margin tender All the four
payable on commodity futures /additional margin period/delivery
period margin
95 What is initial margin It is the amount to be It is the amount to be It is the amount to be It is the amount to It is the amount to be
deposited with deposited with the deposited by the market be deposited with deposited by the market
designated bank before Exchange before starting participants in his the regulator before participants in his margin
starting to trade to trade margin account with start to trade account with Clearing
Clearing Corporation Corporation before they can
before they can place place order to buy or sell a
order to buy or sell a futures contract.
futures contract.
96 How mark to market is determined It is determined by it is determined on the It is determined by None of these it is determined on the basis
taking weekly average basis of closing prices at considering two days of closing prices at the end of
the end of each trading average futures price each trading day
day
97 Mark to market is payable by a buyer price declines price rises price rises as well as none of these price declines
when falls
98 Mark to market is payable by a seller price declines price rises price rises as well as none of these price rises
when falls
99 Under whose guidance Investor SEBI RBI IRDA Central SEBI
protection Fund( IPF) has been set up Government
by stock exchanges?
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100 What is purpose of Investor protection Creating awareness To fulfil corporate social To redress the To facilitate buyer Creating awareness and
Fund and educating general responsibilities(CSR) grievances of the against delivery educating general public and
public and investors default stakeholders about benefit of
stakeholders about trading on commodity
benefit of trading on derivatives market
commodity derivatives
market
101 What is function of Investor protection To compensate To monitor trading To utilise fund for None of these To compensate legitimate
Fund legitimate claims of activity and protect the fulfilling delivery claims of the investors against
the investors against interest of the investors obligation defaulting member through
defaulting member whom they trade
through whom they
trade
102 An arbitration reference for a claim / Panel of Clearing Panel of three arbitrators Monitoring and None of these Panel of three arbitrators
counter claim above Rs.25 lakh shall corporation surveillance panel of
be dealt with by SEBI
103 Which category of institutional Category III Mutual funds & portfolio Eligible Foreign All the three All the three
participants from amongst the given Alternative Investment managers Entities (EFEs) having
options, have been permitted by SEBI Funds (AIFs) actual exposure to
to participate in the commodity Indian commodity
derivatives market to improve markets
liquidity?
104 Who is disseminating daily Settlement Clearing corporation Stock Exchange NERL SEBI Clearing corporation
Price (DSP) at the end of every trading
day
105 Please read the given statement and false 1 partially true Not sure true
answer:
"Mark to market profit or loss is done
at daily settlement price"
106 Please read the given statement and 1 0 partially true Not sure true
answer:
"The daily profits/losses of the
members are settled through using the
daily settlement price"
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107 How daily settlement price i.e. closing It is calculated on the It is calculated on the It is calculated on the It is calculated on It is calculated on the basis of
price is being calculated? basis of the last half an basis of the last one hour basis of the last half an the basis of the last the last half an hour weighted
hour weighted average weighted average price of hour of simple one hour of simple average price of contract
price of contract contract average price of average price of
contract contract
answer:
"Futures contracts are zero sum
game"
109 Why it is said that futures contracts losses and gains to losses and gains to losses and gains to None of these
are zero sum game all positions net out to all positions net out to be all positions net out to losses and gains to
zero negative be positive all positions net out to zero
110 What is meant by convergence in Basis is zero (When Basis is higher Basis is lower Basis is higher than Basis is zero(When the
derivatives market the difference between actual prices difference between ready and
ready and futures price futures price is zero)
is zero)
111 When convergence happens In the beginning of the At the contract expiry Midst of the running After one month At the contract expiry
running contract contract duration of running
contract
112 When basis is positive Futures price is higher Futures price is equal to Spot price is higher Near month futures Futures price is higher than
than spot price spot price than futures price is higher than spot spot price
price
113 When basis is negative Near month futures is Spot price is higher than Futures price is equal to Futures price is Spot price is higher than
lower than spot price futures price spot price higher than spot futures price
price
114 Who plays role for convergence of Hedgers Market maker Arbitrager None of these Arbitrager
spot and futures to happen?
115 How arbitrager reaps the benefit when Sell and buy from Sell and buy from spot sell in futures market Buy in futures sell in futures market and
futures price is higher than the spot futures market market and simultaneously buy market and simultaneously buy from spot
price from spot market simultaneously sell market
in spot market
116 How arbitrager reaps the benefit when Sell in spot market and Sell and buy Sell and buy sell in futures Sell in spot market and
spot price is higher than the futures simultaneously buy simultaneously from simultaneously from market and simultaneously buy from
price from futures market futures market spot market simultaneously buy futures market
from spot market
117 Carrying cost involves insurance interest storage cost All the three All the three
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118 How final settlement price (FSP) is The FSP is arrived at FSP is arrived at by FSP is arrived at by FSP is arrived at by The FSP is arrived at by
arrived at? by taking the simple taking simple average of taking simple average taking simple taking the simple average of
average of the last prices of 15 days of basis of prices of 10 days of average of prices of the last polled spot prices of
polled spot prices of centre prior to due date additional centres as 5 days of basis the last three days viz., E0
the last three days viz., well as basis centre centre prior to due (expiry day), E-1 and E-2.
E0 (expiry day), E-1 prior to due date date
and E-2.
119 What is delivery/expiry month It is the specified It is the specified month It is the specified month None of these It is the specified month
month in which within which a futures in which contracts are within which a futures
giving/taking delivery contract matures. offset and residual contract matures.
happens outstanding position is
marked for delivery
120 What is offset It refers to exitting the It refers to liquidation of a It refers to entering into It refers to entering It refers to liquidation of a
futures market futures contract by selling transaction for into buying futures contract by entering
entering into opposite giving delivery transaction for into opposite (purchase or
(purchase or sale, as the intention taking delivery sale, as the case may be) of an
case may be) of an identical contract.
identical contract.
121 What is cash settlement It is process of It is process of honouring It is a process for None of these It is a process for performing
performing futures the futures contract, while performing a futures a futures contract by payment
contract by giving dispensing with delivery contract by payment of of money difference rather
delivery through money difference rather than by delivering the
payment of cash than by delivering the physical commodity at the
physical commodity at time of maturity of contract.
the time of maturity of
contract.
122 Please read the given statement and 0 1 Partially true Not sure 0
answer:
"Mark to market implies adjusting the
margins after every transaction"
123 What do you understand by volatility Estimation of changes It is a measurement of the measurement daily None of these It is a measurement of the
in price over given variability rate (but not change in the price variability rate (but not the
period of time the direction) of the trend direction) of the change in
change in price over a price over a given time
given time period. period.
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124 Which among the given options, is collects different types arranges for pay-in and assumes the counter- facilitates off facilitates off market
incorrect regarding role of clearing of margins and pay-out of funds party risk of each market transactions transactions
corporation computes obligations member and guarantees
of members financial settlement
125 What is novation Stock exchange Clearing Corporation Designated banks None of these Clearing Corporation
interposes between becomes buyer to every interpose between becomes buyer to every seller
buyers and sellers as a seller and seller to every buyers and sellers as a and seller to every buyer
legal counterparty buyer legal counterparty
126 Which among the given options, is Birth date of investor education details of Arbitration clause bank account Arbitration clause
included in the contract note investor details of investor
127 Why unique client code(UCC) is It will enable It will facilitate arbitration It will permit to trade It will help to track It will permit to trade on the
required accessing the stock opportunities on the stock exchange trading screen of stock exchange platform
exchange trading platform the stock exchange
details
128 What is inverted futures market Near month prices are Near month prices are Near month prices are None of these Near month prices are higher
higher than far month lower than far month equal to far month than far month
129 What is normal futures market Near month prices are Near month prices are Near month prices are None of these Near month prices are lower
lower than far month higher than far month equal to far month than far month prices
prices prices prices
answer:
"Low inventories
tend to lead to high convenience yield
and high inventories tend to lead low
convenience yield"
131 Please read the given statement and true false partially true Not sure true
answer:
"Mark-to-market ensures financial
integrity of the markets"
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Futures contracts are trade on financial exchange
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de on financial exchange Futures contracts allow fewer delivery options than forward contracts
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Answer Choices
Sr. No. Question A B C D Correct answer
1 Which among the given alternatives, is a An option is a contract which gives An option is a contract which An option is a contract which An option is contract which An option is a contract which gives
correct definition of an Option Contract? holder right to buy or sell (but not gives holder right to buy or sell gives holder right to buy or sell gives holder right to buy or holder right to buy or sell (but not
obligation) of underlying asset at a of underlying asset at a market (but not obligation) of sell of underlying asset at a obligation) of underlying asset at a
fixed price within a specified period price within a specified period underlying asset at a fixed negotiable price fixed price within a specified period of
of time of time price. time
2 Which is the correct definition of call Call options are financial contracts Call options are financial Call options are financial Call options are financial Call options are financial contracts
option? that give the option holder the right, contracts that give the option contracts that give the option contracts that give the option that give the option buyer the right,
but not the obligation, to buy a stock, buyer the right, to buy a stock, buyer the right, but not the buyer the right, but not the but not the obligation, to buy
bond, commodity or other asset or bond, commodity or other asset obligation, to buy a stock, bond, obligation, to buy a stock, underlying asset or instrument at a
instrument at a specified price within or instrument at a specified commodity or other asset or bond, commodity or other specified price within a specific time
a specific time period. price within a specific time instrument at market price asset or instrument at a period.
period. negotiated price between
buyer and seller within
specified time period
3 Which among the given options, defines It is an option contract in which the It is an option contract in which It is an option contract in which It is an option contract in It is an option contract in which the
put option correctly holder has the right (but not the the holder has the right to sell the holder has the right (but not which the holder has the holder has the right (but not the
obligation) to sell a specified a specified quantity at a the obligation) to sell a specified right to sell a quantity at obligation) to sell a specified quantity
quantity at a specified price (strike specified price (strike price) quantity of underlying asset at a mutually agreed price of underlying asset at a specified price
price) within a fixed period of time any day during contract period. specified price (strike price) (strike price) within a specific time
(until its expiration). within a specific time period period
4 How is an option contract strikingly In forward/futures, both the parties In forward/futures, both the In forward/futures, only seller It is pre-decided price at In forward/futures, both the parties
different from forward/futures contract? have a binding commitment, which is parties have a binding has obligation whereas in option which option contract to be have a binding commitment, however
not in option commitment, however in both the parties have a binding bought or sold in options only option seller has
options only option seller has commitment obligation whereas option buyer has
obligation whereas option choice
buyer has choice
5 Who is writer of the option? One who sells option by charging One who takes short open Both buyer as well as seller none of these One who sells option by charging
premium from option buyers and position /seller premium from option buyers and take
take obligation to fulfil commitment obligation to fulfil commitment in
in case buyer exercises the option case buyer exercises the option
6 What do you understand by strike price? It is price at which call option is It is pre-decided price at which It is pre-decided price and part It is mutually agreed price at It is pre-decided price and part of
entered into option buyer is eligible to buy of contract specifications, at which both put and call contract specifications, at which
or sell the underlying asset which option buyer is eligible to options are entered into option buyer is eligible to buy or sell
buy or sell the underlying asset. the underlying asset.
7 What is expiration date? It is last day on which either option It is last day on which futures None of these
contract is exercised or it lapses contract expires It is last day of the contract on
which spot and futures merged It is last day on which either option
into each other contract is exercised or it lapses
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Answer Choices
8 What is exercise date? The day on which forward The date on which option is A day on which holder can
contracts are entered into actually exercised by the option acquire position in the
holder underlying futures contract
The day on which both futures and The date on which option is actually
option contracts are entered into exercised by the option holder
9 What is option premium? It is mutually agreed price at which It is pre-decided price at which It is the price (cost) paid by None of these It is the price (cost) paid by option
both put and call options are entered option buyer is eligible to buy option buyer to the option seller buyer to the option seller to acquire
into or sell the underlying asset to acquire the right to buy the the right to buy or sell the underlying
underlying at a specific exercise at a specific exercise price
price
10 Which among the given options, is not a zinc crude oil currency soybean currency
commodity as underlying for trading in
the option?
11 How does one refer to risk that a Premium risk Spread risk margin risk basis risk Basis risk
commodity futures price will move
differently from that of its underlying
physical commodity?
12 Deep in the money commodity call Long position in the underlying Short position in the underlying Short position in the underlying None of these Long position in the underlying
options on exercise gives the option buyer futures commodity futures physical commodity futures
13 What option contract buyer acquires? A right but not an obligation A right and an obligation an obligation but not a right Neither a right nor an A right but not an obligation
obligation
14 Which option gives option buyer zero or In the Money (ITM) & Out of the At the Money (ATM) & Close All exchange traded Out of the money and At the Out of the money and At the Money
close to zero cash flow, if it were Money (OTM) option to Money (CTM) option Money option option
exercised immediately?
15 Maximum potential gain for seller of an Unlimited Limited to the spot price of the limited to the futures price of Limited to the premium Limited to the premium received
option contract is---,till the expiry of the underlying the same expiry received upfront upfront
contract
16 When you are bullish about a commodity sell call buy put buy call none of the above buy call
you can do a
17 When you are bearish about a commodity buy call sell call buy put none of the above buy put
you can do a
18 An index option is a debt instrument derivatives product cash market product money market instrument derivatives product
19 The buyer of an option can not lose more True only for European options True only for American options False for all options True for all options True for all options
than option premium paid
20 A strangle is a mixed option strategy two puts and one call with the same two calls and one put with the A call and a put for the same A call and a put at a same A call and a put for the same expiry
consisting of expiry date same expiry date expiry but at different strike strike price and expiry date but at different strike prices
prices
21 The maximum risk in short put is Unlimited Equal to the price of the Equal to the price of the None of these Unlimited
commodity minus the premium commodity plus the premium
received received
22 Which one of the transaction would be Sell a call against commodity you Buy a put on a commodity you Buy a call on a commodity you sell a put on commodity you Buy a put on a commodity you own
considered a protective strategy? sold short own own own
23 What will be the value of the option if a Less than the value of a put option Greater than the value of a put Zero Equal to the value of a put Less than the value of a put option
call option is far out of the money? with the same exercise price option with the same exercise option with the same exercise with the same exercise price
price price
24 What is the reason of difference between The volatility of price of the The use of continuous as The differential between the Both are different contracts Both are different contracts with
value of a call option and put option with underlying commodity opposed to discrete discounting current commodity price in with different obligations and different obligations and risks
the same exercise price? present value terms risks
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Answer Choices
25 When price of the underlying asset is Buy a Call option sell a call option buy a put option sell a put option Buy a call option
expected to increase, then the good option
is to
26 The type of option that can be exercised European option American option Australian option Canadian option European option
only at the date of expiration is classified
as
27 Please read the given statement and then True False Partially true Not sure True
select the right option as your answer:
"An option value can never be less than
zero"
28 Please read the given statement and then 1 False Partially true Not sure 1
"At expiration a call option will have no
value if the commodity price is less than
exercise price "
29 Which from amongst the given options is The loss potential is unlimited The profit potential is unlimited The premium exceeds the strike There is no expiration date , The profit potential is unlimited
true for the owner of a call option? price unless the option is a
European call
30 Which of the option trader receives, rather Option buyer Option seller Both option seller and option Neither buyer nor seller Option seller
than pays a premium buyer receives premium
31 Please read the given statement and then 0 True Partially true Not sure True
"Option contracts are not
symmetrical with respect to rights and
obligations of the parties involved"
32 Please read the given statement and then 0 1 Partially true Not sure True
"The term European and American have
nothing to do with the location of the
option or the exchange"
33 What is Bermudan option? An option that can be exercised on An option that can be exercised An option that can be exercised None of these An option that can be exercised on
the expiry of the contract on specified dates during its life two days prior to expiry of the specified dates during its life
contract
34 What determines the option premium? The options exercise price The length of time remaining Volatility of underlying futures all the three all the three
until expiration contract
35 What is implied from the statement that Its time value increases with Its time value becomes equal Its time value declines as it Its time value becomes higher Its time value declines as it approaches
an option is an eroding asset? expiration with price at the time of expiry approaches expiration than price at the time of expiration
expiry
36 Among these, which one does not indicate Market limits are imposed on both Contracts for each cover a Both entail the shifting of risk of Both buyers and sellers are Both buyers and sellers are subject to
similarity between option and futures? distinct period of time and producer subject to asymmetrical asymmetrical obligations
cease to exist at expiration obligations
37 Among these, which one does not indicate Option do not limit the profit Option can be exercised /offset Multiple option strategies are Both are derivatives to be Both are derivatives to be traded on an
difference between option and futures? potential before expiration available based on market view traded on an organised organised regulated Exchange
regulated Exchange
38 What is in the money (ITM) call option Spot price is greater than strike price Spot price is Lower than strike Spot price is equal to strike None of these Spot price greater than strike price
contract? price price
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Answer Choices
39 What is at the money (ATM) call option Spot price is lower than strike price spot price is equal to strike Spot price is greater than strike none of these spot price is equal to strike price
40 What is out of the money (OTM) call Spot price is greater than strike price Spot price is lower than strike Spot price is equal to strike None of these Spot price is lower than strike price
option contract? price price
41 What is in the money (ITM) put option Spot price is lower than strike price Spot price is higher than strike Spot price is equal to strike None of these Spot price lower than strike price
42 What is at the money (ATM) put option Spot price is greater than strike price Spot price is equal to strike Spot price is lower than strike None of these Spot price is equal to strike price
43 What is out of the money (OTM) put Spot price is lower than strike price Spot price is greater than strike Spot price is equal to strike None of these Spot price is greater than strike price
option contract? price price
44 Which are the components of a premium Intrinsic value and time value time value and market price Market price and futures price none of these Intrinsic value and time value
or price of an option? of an underlying asset
45 What is intrinsic value? Intrinsic value is the difference Intrinsic value is the difference Intrinsic value is the difference none of these Intrinsic value is the difference
between the price of underlying asset between the price of underlying between the spot price and between the price of underlying asset
and the strike price asset and the futures price interest rate and the strike price
46 What is time value of an option? Option premium- intrinsic value Option premium- Spot price Intrinsic value -price of Price of underlying asset- Option premium- intrinsic value
underlying asset interest rate
47 Please read the given statement and then 0 1 Partially true Not sure 1
"The longer the time of a call to
maturity,the greater will the time value
be"
"If a call writer owns the asset underlying
the call, he is said to have written a
covered call"
49 What is naked call? If a put is written where the writer If a call is written where the Due to non availability asset call None of these If a call is written where the writer
does not have the asset underlying writer does not have the asset option is cancelled does not have the asset underlying the
the put option the put is said to be underlying the call option the call option the call is said to be naked
naked call is said to be naked call call
50 What is bid ask spread? Difference between ask and bid Difference between price of Difference between price of a Difference between spot and Difference between ask and bid prices
prices the underlying asset and strike futures contract and underlying futures price
price option contract
51 Please read the given statement and then 1 False Partially true Not sure 1
"If the price of the underlying asset is
lower than the exercise price on the
expiration of call option , the call would
expired unexercised"
"At expiration the price of underlying
asset is greater than exercise price the put
will expire unexercised"
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Answer Choices
53 Please read the given statement and then 1 0 Partially true 1
"It is possible for a futures contract to be
underlying asset for an options contract"
Not sure
54 Which Option is exercised on the expiry Out of the money Close to money At the money In the money In the money
date?
55 Which option lapses automatically? At the money In the money Close to money Out of the money out of the money
56 What is the maximum potential gain for Unlimited Limited to the spot price of the Limited to the futures price of Limited to the premium Limited to the premium received
seller of an option contract till the expiry underlying the same expiry received upfront upfront
of the contract
57 If a commodity call option has a strike Rs.50 Rs.100 Rs.150 Rs.200 Rs.150
price of Rs 1800/- and the current market
price of the underlying asset is
Rs.1950/- ,what will be its intrinsic value
58 If call option has a strike price of Rs Rs. 70 Rs. 90 Rs. 100 Rs. 140 Rs. 90
1210/- and the current market price of the
underlying asset is Rs.1320/- and option
premium is Rs.200, then what will be the
time value
59 Please read the given statement and then True False Partially true True
"If other things remain constant the strike
price of option increases, intrinsic value
of call option will decrease and hence its
value will also decrease"
Not sure
60 Please read the given statement and then 0 Partially True 1 Not sure 1
"If other things remain constant increase
in the strike price of option increases,
intrinsic value of put option which in turn
increases its option value"
61 A trader will opt for an option contracts He thinks the price of the asset in the He is uncertain but thinks it He is uncertain but thinks it He thinks price of the asset He is uncertain but thinks it more
rather than a futures contract on an asset underlying market will certainly fall more likely that price of the more likely that price of the will remain unchanged likely that price of the asset will rise
when asset will fall than rise asset will rise than fall than fall
62 Which among the given options, is There is less risk of default on the Over the counter contracts are Over the counter contracts are Over the counter contracts Over the counter contracts are more
advantage of over the counter derivatives over the counter contract always for longer period more flexible are more readily tradable flexible
against exchange traded derivatives?
63 What is volatility? Rising trend in the prices over a The propensity of the market falling trend in the prices over None of these The propensity of the market price of
period of time price of underlying commodity the period of time underlying commodity to change in
to change in either either direction ,over a period of time
direction ,over a period of time is called volatility
is called volatility
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Answer Choices
64 A long call is used when one expects that market would fall one expects that market would one expects that market would none of these one expects that market would rise
rise remain unchanged
65 A long put is used when long put would gain value as the long put would gain value as long put would gain value as the none of these long put would gain value as the
underlying asset price rises the underlying asset price underlying asset price remains underlying asset price declines
declines unchanged
66 What is meant by option Greeks? Statistical method denoting The The variation in the option Different option strategy None of these The variation in the option value with
variation in option value with respect value with respect to each formulated to explain the respect to each determinant of price is
to price determinant of price is denoted variation in option value with denoted by Greek alphabets
by Greek alphabets respect to each determinant of
price
67 Which are the Greek alphabets? Delta Gamma Theta All the three All the three
68 What is delta? It is a measure of how much an It is a measure of how much a It is a measure of how much an It represents sensitivity of It is a measure of how much an option
option premium changes, given a strike price changes, given a option premium changes, given option price with respect to premium changes, given a unit change
unit change in the underlying futures unit change in the underlying change in the interest rate change in the price of in the underlying futures price
price asset price underlying asset
69 Please read the given statement and then 0 1 Partially true Not sure True
"Delta for call option buyer is always
positive"
70 Please read the given statement and then 1 False partially true Not sure True
"Delta for put option buyer is negative"
71 What is Gamma? It is a measure of how much an It is the rate of change of delta It is a measure of sensitivity of None of these It is the rate of change of delta of the
option premium changes, given of the option with respect to the option price to change in market option with respect to the price of
change in the interest rate price of underlying asset volatility underlying asset
72 What is Theta? It is a measure of the rate of decline It is a measure of sensitivity of It is a measure of how much a It is a measure of the It is a measure of the sensitivity of the
in the value of an option due to the option price to change in strike price changes, given a sensitivity of the value of value of option to passage of time
passage of time. market volatility unit change in the underlying option to passage of time
asset price
73 Please read the given statement and then True Partially True False Not sure True
"Theta is negative for a long option,
whether it call or a put"
74 What is Vega? It measures change in option price It is the measurement of an It is a measure of how much a None of these It is the measurement of an option's
given a one day decrease in time to option's price sensitivity to strike price changes, given a price sensitivity to changes in the
expiration changes in the volatility of the unit change in the underlying volatility of the underlying asset.
underlying asset. asset price
75 Please read the given statement and then 1 Partially true 0 Not sure True
"Vega is positive for a long call and a
long put"
76 What is Rho? This is measure of sensitivity of It measures the sensitivity of an It is a measure of how much a This is measure of sensitivity It measures the sensitivity of an option
option price to changes in market option or options portfolio to a strike price changes, given a of option price to change in or options portfolio to a change in
volatility change in interest rate. unit change in the underlying market volatility interest rate.
asset price
BSE - INTERNAL
Answer Choices
77 What is Black -Scholes model? This model is used to calculate a This model is used to calculate This model is used to calculate None of these This model is used to calculate a
theoretical price of options using the impact of volatility on option changes in option price with theoretical price of options using the
five key determinants of an option premium change in price of underlying five key determinants of an option
price asset price
78 What are the key determinants of an Strike price and underlying price Volatility Time to expiration All the three All the three
option price in Black -Scholes model?
79 If the value of underlying asset rises, then Rises Falls No change fall in strike price Rises
the call premium
80 If the value of underlying asset rises, then Falls Rises No change Rise in strike price Falls
the put premium
81 If the strike price rises, then the call Rises Falls No change Rise in underlying asset price Falls
premium
82 If the strike price rises, then the put Falls Rises No change Fall in underlying asset price Rises
premium
83 If time to expiry is increased, then the call Rises Falls No change underlying price will increase Rises
premium
84 If time to expiry is increased, then the put Falls Rises No change underlying price will decrease Rises
premium
85 If volatility increases, then call premium Rises Falls No change Both strike price and Rises
underlying price rise
86 If volatility increases, then the put Rises Falls No change Both strike price and Rises
premium underlying price fall
87 If interest rate rises, then the call premium Rises Falls No change Underlying price rises Rises
88 If interest rate rises, then the put premium Rises Falls No change strike price falls Falls
89 Which is the most popular and Delta -normal Historical simulation Monte-Karlo simulation variance-covariance Monte-Karlo simulation
sophisticated method for calculating
Value at Risk(Var)?
90 Option has an advantage over futures Option provides hedge without Option provides more certain Option is likely to be cheaper In option, it is less likely to Option provides hedge without
because removing opportunity to make profit hedge than futures require delivery of underlying removing opportunity to make profit
asset
BSE - INTERNAL
Answer Choices
S.No. Question A B C D Correct Answer
1 What do you understand by a commodity? In economics, A commodity is Commodities are All the Three All the Three
a commodity is an defined as a tangible most often used as
economic good or good that can be inputs in the
service that has full or bought and sold or production of other
substantial fungibility exchanged for goods or services.
products of similar
value
2 A soft commodity refers to a commodity Grown (Cultivated) mined manufactured None of these Grown (Cultivated)
that is
3 A hard commodity is one that is Mined/Extracted Grown Manufactured None of these Mined/Extracted
4 Among these, which is a soft commodity? Gold diamond wheat copper wheat
5 Among these, which is a hard commodity? rice soybean silver turmeric silver
6 What type of commodity does live cattle is? Agricultural energy livestock precious metal livestock
7 Which stock exchange is having major share MCX NCDEX ICEX BSE NCDEX
in trading volumes in agricultural
contracts?
8 Which stock exchange is having major share NCDEX MCX NSE BSE MCX
in trading volumes in non agricultural
contracts?
9 Which is the important cash crop in India? Cotton turmeric bajra Maize Cotton
10 Which factor from amongst the given Demand-supply Previous prices of Production and Prices of jute Prices of jute products
options, does not influence the price of scenario cotton prices of synthetic products
cotton? fibre
11 Which Exchange serves as reference price NCDEX NYBOT BSE MCX NYBOT
for cotton?
12 Palm oil is extracted from Mature fresh fruit Dry fruit bunches Stem Leaves Mature fresh fruit bunches
bunches
13 RBD Palmolein is the derivative of Coconut kernel Soybean Rapeseed Crude palm oil Crude palm oil
(CPO)
14 Which factor amongst the given option Prices of Rapeseed oil Prices of coconut oil Prices of CPO Prices of sunflower Prices of CPO
directly influences the price of RBD oil
palmolein
15 Soy oil is the derivative of CPO Soybean Groundnut Sunflower Seed Soybean
16 Which of the market reflects the price of Indore Delhi Ahmedabad Jaipur Indore
domestically crushed refined soy oil?
17 Which of the market reflects the price of Mumbai Kolkata Visakhapatnam Kandla Mumbai
imported refined soy oil?
BSE - INTERNAL
Answer Choices
18 Physical settlement involves the physical An accredited Stock Exchange Buyer requested Seller requested An accredited warehouse
delivery of the underlying commodity warehouse destination destination
through
19 Typically, in all commodity derivatives Letter of credit Warehouse receipt Undertaking Advance payment Warehouse receipt
transactions, delivery notice is required to be between seller and
supported by a buyer
20 Jute cultivation in India is concentrated in Ganga Godavari Brahmaputra Mahanadi Ganga

the delta area of which river?
21 The eyes of potato are useful for Nutrition Respiration Vegetative Protection from Vegetative Propagation
Propagation predators
22 Rotation of crops means growing of different shifting of area of growing two or more alternating crops growing of different crops
crops in the same area same crops. crops simultaneously with fruits over a in the same area in
in sequential seasons. to increase period of time sequential seasons.
productivity.
23 The nitrogen present in the atmosphere is not useful to plants injurious to plants directly utilized by utilized through utilized through micro-
plants micro-organisms organisms
24 Which is the largest cotton growing State in Maharashtra Madhya Pradesh Andhra Pradesh Gujarat Gujarat
India?
25 Which variety of coffee is largely grown in Old Chicks Coorg Arabica Kents Arabica
India?
26 Under which Five Year Plan, did the Second Five Year Plan Third Five Year Fourth Five Year Fifth Five Year Fourth Five Year Plan
Government introduce an agricultural Plan Plan Plan
strategy which gave rise to Green
Revolution
27 Besides Rabi and Kharif, which is the third Zaid Sharad Jhum Barsati Zaid
crop season in India
28 Kharif crops are sown in the months of June - July October - May - June March - April June -July
November
29 Rabi crops are sown during which period March - April June - July October - November May - June October - November
30 Kharif crops are harvested in June - July October - May - June March - April October - November
November
31 Rabi crops are harvested during which April-May June - July October - November May - June April -May
period
32 zaid crops are grown in which season March-June April- May June -July October-November March-June
33 Among these, which group of crops are Rice, Cotton, Onion, Potato, Mustardseed, sesame Wheat, gram, oat Rice, Cotton, Groundnut,
grown during Kharif season? Groundnut, Urad barley seed Urad
BSE - INTERNAL
Answer Choices
34 Among these, which group of crops are Wheat Barley gram Rice Cotton Urad Turmeric Maize Bajra Wheat Barley gram potato
grown in the Rabi season? potato Groundnut Jowar sugarcane
35 Among these which group of crops are cucumber watermelon tomato jute cardamom pepper Coriendarseed cucumber watermelon
grown in the Zaid season? Muskmelon, sunflower seed Jeera nutmeg Muskmelon,
36 Among these, which crop is preferred for Wheat Gram Sunflower Mustardseed Gram
sowing in order to enrich the soil with
nitrogen?
37 For Black soil is not very suitable for which Cotton Wheat Ground nut Potato Groundnut
of the crops from amongst the given
options?
38 Which crop is grown mainly on mountain Tea paddy groundnut Potato Tea
slopes?
39 Transport function of marketing creates place utility form utility time utility possession utility place utility
40 Converting groundnut into oil creates form utility time utility place utility possession utility form utility
41 Storing agriculture production, like food form utility time utility place utility possession utility time utility
grains, pulses, oilseeds create
42 Marketable surplus will be less in case of rice sugarcane cotton tomato sugarcane
43 Which Stock Exchange launched ICEX NSE NCDEX MCX NCDEX
agricultural futures trading index 'Agridex'?
44 Which of the given factors influence prices demand -supply dependence on agro Government all the three all the three
of agri commodities? mismatch climatic conditions intervention in terms
like rainfall of stock limit,
import-export policy
45 Co-operative marketing movement was cotton pulses edible oil milk milk
successful in India in which of the given
commodities?
46 Quality of agricultural commodities is AGMARK ISI BSI ISO AGMARK

ensured by
47 From amongst the given options, which is maize rice wheat sorghum wheat
the largest grown crop in the world?
48 Which is the most efficient system for crop Drip sprinkler solar pump irrigation through Drip
irrigation? canal
49 Which state is the largest producer of Uttar Pradesh Andhra Pradesh Maharashtra Goa Andhra Pradesh
chillies and turmeric in India?
BSE - INTERNAL
Answer Choices
50 Which is the central nodal agency for Food Corporation of National Bank for National Reserve Bank of NAFED
implementing price support operations for India (FCI) Agriculture and Agricultural India (RBI)
commercial crops? Rural Development Cooperative
(NABARD) Marketing
Federation of India
Ltd.(NAFED)
51 West Bengal Kerala Maharashtra Punjab West Bengal

Which state among the given options, has
the largest production of rice
52 Yellow colour in turmeric is caused due to boron curcumin iron none of these curcumin
presence of
53 Among these, which crop is not part of jowar pulses wheat rice Pulses
high-yielding varieties programme?
54 Which state contributes highest share in Madhya Pradesh Bihar Rajasthan Tamil Nadu Madhya Pradesh
pulses production in India?
55 Among Indian States, which state has the West Bengal Kerala Karnataka Goa West Bengal
highest yield (per hectare) of rice?
56 Among the Indian States, Uttar Pradesh is Groundnut Sugarcane Maize Bajra Sugarcane
the largest producer of which of the given
crops?
57 White rust is fungal disease of Wheat Mustard Rice Jawar Mustard
58 Which crop requires water-logging for its Tea coffee rice mustardseed rice
cultivation?
59 The adoption of High Yielding Variety 1966 1967 1965 1968 1966
Programme in Indian Agriculture started in
60 Among these, which is a food crop? Palm Jute Cotton Maize Maize
61 Among these, which is an oilseed crop? clove mustardseed garlic almond mustardseed
62 Among these, which is not an agricultural cotton copper Jowar cardamom copper
commodity?
63 Which is the usual alternate crop in Jute rice cotton wheat sugarcane rice
growing areas?
64 Among these, which state does not produce Madhya Pradesh Maharashtra Rajasthan Tamilnadu Tamilnadu
chana?
65 Which crop is affected by pink bollworm? cotton gram Mustardseed maize cotton
66 Where National Sugar Institute (NSI) is Delhi Kanpur Varanasi Lucknow Kanpur
located?
67 The green revolution has mainly been rice maize wheat gram wheat
successful for
68 Which crop is affected by Tobacco Jute sugarcane bajra wheat jute
caterpillar?
BSE - INTERNAL
Answer Choices
69 Which state contributes highest in the Kerala Tamilnadu Karnataka Andhra Pradesh Karnataka
production of coffee in India?
70 Which states are the highest & lowest Uttar Pradesh and Bihar & Assam Uttar Pradesh & Maharashtra & Uttar Pradesh and
producers of potato crop? Jharkhand Himachal Pradesh Karnataka Jharkhand
71 What is used by feed manufacturers as a guar churi soybean meal guar -korma none of these soybean meal
prime ingredient in high-protein animal feed
for poultry and livestock?
72 Among all, in which commodity India is refined soy oil chana groundnut oil urad chana
largest producer as well as importer in the
world?
73 Among all, which basket of commodities foodgrains pulses oilseeds all the three all the three
have been procured by NAFED under price
support system?
74 Which among these commodities is free wheat castorseed rice maize castorseed
from any regulatory intervention by the
government in terms of procurement, MSP,
import duty, export duty and stock limit?
75 India is major producer and exporter in the fenugreekseed Chilli nutmeg black pepper Chilli
world for which of the given spices?
76 Which commodity, from among the given refined soy oil mustardseed guarseed soybean guarseed
options, is free from any regulatory
intervention?
77 Which commodity is neither exported nor groundnut oil cottonseed oil cake refined soy oil cardamom cottonseed oil cake
imported?
78 Which is internationally benchmarked agri sugar turmeric isabgulseed bajra sugar
commodity?
79 Which commodity from the given options, is urad crude palm oil tur moong crude palm oil
not produced in India and thus, imported on (CPO)
a large scale?
80 India imports crude palm oil (CPO) from South Korea Malaysia China Brazil Malaysia
81 How crude palm oil is being traded? wholesale market APMC mandi open market NAFED open market
82 In which commodity there is no specific Mentha oil Rubber Rapeseed/mustard Maize Mentha oil
regulator for physical market? seed
83 Where is the headquarter of Indian Council Mumbai Bangalore New Delhi Jaipur New Delhi
of Agricultural Research (ICAR)
BSE - INTERNAL
Answer Choices
Sr. Questions A B C D Correct Answer
No.
1 In which country futures trading in China India USA Japan India
diamond started first?
2 Which was the stock exchange in NSE MCX BSE NCDEX BSE
India to have launched first options
in goods?
3 Which stock exchange launched ICEX,India BSE,India NCDEX,India NSE, India ICEX,India
for the first time diamond futures
in the world?
4 Which state contributes the Chhattisgarh Odisha Rajasthan Bihar Rajasthan

highest to the production of
minerals in India?
5 India is largely self-sufficient in coal petroleum natural gas lignite coal

which mineral fuels?
6 Among metallic minerals, India is iron ore gold copper bauxite iron ore
self sufficient in
7 In the worldwide oil industry, an 42 US gallons 58 US gallons 62 US gallons 60 US gallons 42 US gallons
oil barrel is defined as
8 Gold and silver are categorised as currency rare metals bullion base metals bullion
9 Which is the leading copper China US Peru Chile Chile

producing nation in the world?
10 Gold prices in India are affected by interest rate currency inflation none of these All the three
movements fluctuation
11 Maximum use of nickel is in the stainless steel sector metal and alloys chemical industry coin-making stainless steel sector
sectors
BSE - INTERNAL
Answer Choices
No.
12 Which commodity India is copper aluminium zinc nickel nickel
importing owing to zero domestic
production?
13 London Metal Exchange is bullion iron ore soft commodities non-ferrous non-ferrous base
providing a trading platform for base metals metals
the participants who wish to
safeguard against risk due to
adverse price movements in
14 Among these, which is the largest Barrick gold, Polyus,Russia Newmont Anglogold Newmont
gold mining company in the Canada goldcrop,USA Ashanti,South goldcrop,USA
world? Africa
15 Indian crude oil futures are LME CME WTI crude CME Henry Hub COMEX CME WTI crude oil
benchmarked to oil prices prices
16 Indian natural gas futures are Henry Hub LME COMEX Intercontinenta Henry Hub
benchmarked to l Exchange
17 Indian gold and silver futures are COMEX LME Platt's Henry Hub COMEX
benchmarked to
18 Which is the top silver producing Chile US Brazil Mexico Mexico
country in the world?
19 Which is the top gold producing United States of China Russia UK China
country in the world? America
20 Which commodity is considered as gold copper iron steel gold
investment vehicle?
BSE - INTERNAL
Answer Choices
No.
21 Why gold is considered as maintaining its available in large demand for coins easy to maintaining its
investment vehicle? value and scale transport value and
purchasing power purchasing power
during inflationary during inflationary
periods periods
22 What are the options available to Sovereign gold Gold backed ETF Gold monetisation All the three all the three
invest in gold? bond scheme
23 Which is the key factor for gold jewellery investment central bank reserve technology jewellery
demand in India?
24 During April 2020, the price of gold natural gas crude oil copper crude oil
which commodity witnessed an
unprecedented decline to reach
negative level in commodity
derivatives market in the world?
25 Which commodity is considered as silver crude oil gold platinum gold

safe haven in times of high
uncertainty?
26 Which commodity is 100% copper nickel aluminium zinc aluminium

recyclable without any loss of its
natural qualities?
27 Which commodity is an alloy of nickel lead brass tin brass

copper and zinc?
28 Which is the metal mainly used as copper nickel zinc brass zinc
anti-corrosion agent?
29 Which commodity is known as zinc crude oil natural gas nickel crude oil
black gold?
BSE - INTERNAL
Answer Choices
No.
30 Where are the majority of crude Middle east India Australia China Middle east
oil reserves located?
31 What is the key use of crude oil in producing petrol & producing various Producing fuel for cars lubricants for producing petrol &
India? diesel forms of trucks airplanes and all kinds of diesel
petrochemicals boats machines
plastics for
toys, bottles
32 Which commodity is cleanest and coal crude oil natural gas jet fuel natural gas
safest and most useful in all energy
sources?
33 Which country has largest natural Algeria Russia Qatar Venezuela Russia
gas reserves in the world?
34 Where major diamond mines are south Africa India china Australia South Africa
found?
35 Which is the top diamond mining De Beers Alrosa Rio Tinto all the three all the three
company in the world?
36 Which is the important diamond Surat New Delhi Ahmedabad Mumbai Surat
trading and cutting centre in India?
37 Which among the given options is colour cut clarity all the three all the three
a parameter based on which the
price of diamond is determined?
BSE - INTERNAL
Answer Choices
No.
38 In terms of physical dimension bauxite aluminium steel manganese steel
which commodity is categorised as
flat product and long product
39 Which country is second largest China India South Korea Italy India
steel producing country in the
world?
40 In which sector steel flat products automobile domestic construction of roads ship building construction of roads
are not being used? appliances
41 Which metal stands for the highest brass copper aluminium lead aluminium
consumption in base metal?
42 Which metal is excellent conductor Brass zinc lead copper copper

of heat and electricity?
43 Which is the lightest metal in the copper brass aluminium tin aluminium
world?
44 Which is the raw material used for brass zinc bauxite copper bauxite
the production of aluminium?
45 What are the upstream process mining smelting refining all the three all the three
involved in non ferrous metal
industry?
46 What are the downstream process casting fabricating recycling all the three all the three
involved in non ferrous metal
industry
BSE - INTERNAL
Answer Choices
No.
47 What is the primary form of ingots billets wire rods cakes ingots
aluminium?
48 What is the primary form of cathodes cakes rods billets cathodes
copper?
49 What are the primary form of zinc ingots billets rods cakes ingots
and lead?
50 Which are the downstream flat rolled products extrusions foils wires flat rolled products
products in case of aluminium?
51 Which are the downstream rods wires sheets strips rods
products in case of copper?
52 Which are the downstream extruded products profiles tubes rods extruded products
products in case of zinc and lead?
53 Which entity is playing role in miners integrated custom smelters secondary miners
copper industry structure at initial producer producer
stage?
54 Which country has highest bauxite Indonesia Guinea India Brazil Guinea
reserves in the world?
55 Which state is having highest Rajasthan Odisha Andhra Pradesh Bihar Odisha
bauxite reserves in India?
56 In which state of India copper Rajasthan Bihar Jharkhand Madhya Rajasthan
mines are concentrated in large Pradesh
scale?
BSE - INTERNAL
Answer Choices
No.
57 Please read the given statement 1 0 Partially true Not sure True
and then select the right option as
your answer:
"Primary non ferrous metals
industry is dominated by few
large players, while secondary
segment is fragmented and
unorganised"
58 Which is the vertically integrated Hindalco Vedanta NALCO HCL HCL

company in case of copper?
59 Please read the given statement 0 partially true true Not sure true
your answer:
"Production of one tonne of
aluminium requires 2 tonne of
alumina while production of one
tonne of alumina requires 3-4
tonne of bauxite"
60 Which metal production needs nickel copper aluminium brass aluminium

abundant amount of energy
61 To which country India exports France Indonesia Taiwan Brazil Taiwan
primary copper and copper
products?
BSE - INTERNAL
Answer Choices
No.
62 In India, which is the key sector electrical sector transportation consumer durables building and electrical sector
from the aluminium consumption construction
point of view?
63 Which country in the world China Peru Australia Bolivia China

accounts for the highest lead
reserves?
64 About 75% of lead used in batteries alloys cable sheathing rolled and batteries
producing extruded
products
65 From which country India imports Australia South Korea Malaysia Canada Australia
lead scrap?
66 To which country India exports Germany UAE USA UK Germany
lead products?
67 Please read the given statement 1 partially true 0 Not sure True
your answer:
"Zinc is primarily used in
galvanisation of steel in order to
prevent rusting."
68 Which country accounts for the Australia India Kazakhstan Mexico Australia
highest zinc reserves in the globe?
69 In India, which is the only Hindalco Hindustan Zinc Hindustan Copper Ltd. Vedanta Hindustan Zinc Ltd.
producer of primary zinc as well as Ltd.
the only integrated producer of
primary zinc ore?
BSE - INTERNAL
Answer Choices
No.
70 Dubai Mercantile Exchange is sole Oman crude oil furnace oil heating oil brent crude oil Oman crude oil
benchmark for
71 Which is the major importer of Spain Belgium China Kazakhstan China
zinc ores and concentrates from
India?
72 To which country India exports Malaysia Indonesia Singapore Nepal Indonesia

zinc and alloys?
73 Which is the major port for non Tuticorin Kandla Nhava- Visakhapatnam Nhava-
ferrous metal scrap in India? Sheva(Mumbai) Sheva(Mumbai)
74 Which is the principal country Morocco Finland Republic of Zambia Republic of
producing cobalt in the world? Congo(DRC) Congo(DRC)
75 Based on the growth and Make in India National Solar Power for All All the three all the three
development of the key industrial Mission and
sectors which core schemes and Housing for All
programme are planned by the
Government?
76 Among the products derived from petrol and diesel naphtha asphalt Tar petrol and diesel
crude oil, which are covered under
essential commodities Act in
India?
77 All the non ferrous metal contracts Dalian Commodity Chicago Board of London Metal MCX London Metal
are benchmarked to which Exchange Trade Exchange Exchange
Exchange in the world?
78 Which metal is the most preferred nickel tin brass aluminium tin
and environment-friendly packing
material?
BSE - INTERNAL
Answer Choices
No.
79 Which is the only State in India Odisha Andhra Pradesh Chhattisgarh Bihar Chhattisgarh
that produces tin concentrates?
80 Which is the key consumer tin plate industry solder industry consumer durables electrical tin plate industry
industry of tin in India? applications
81 Which is the leading tin producing China Australia Vietnam Bolivia China
country in the world?
82 Which is the largest producer of Kazakhstan Spain India Indonesia India
sponge iron in the world?
BSE - INTERNAL
Sr.No. Queries Answer choices
1 Which is the oldest commodity derivatives New York Osaka Rice Chicago Board of Tokyo Osaka Rice Exchange, Japan
exchange in the world? Mercantile Exchange Exchange, Japan Trade, USA Commodity
(NYMEX), USA Exchange, Japan
2 When Osaka Rice Exchange was set up? 1813 1730 1850 1910 1730
3 When Organisation of Petroleum Exporting 6/17/1964 11/21/1959 9/14/1960 4/14/1957 9/14/1960
Countries(OPEC) was set up?
4 Who were the founder member countries of Iran Iraq Venezuela All the three All the three
OPEC?
5 Currently, how many countries are 20 13 21 17 13
members of OPEC?
6 Which commodity has its price Coffee Cocoa Crude palm oil Rubber Crude palm oil
benchmarked to Bursa Malaysia Derivatives
Exchange (BMDEX)?
7 Where derivatives contracts in live cattle are Intercontinental Shanghai Chicago Kansas City Chicago Mercantile Exchange
being traded? Exchange (ICE) Futures Mercantile Board of Trade
Exchange Exchange
8 What type of derivatives instruments are Futures & option warrant swaps forward Futures and options
traded on MCX platform?
9 Where are commodity derivatives like Shanghai futures Intercontinental Dalian Chicago Chicago Mercantile Exchange
Lean Hog, Dry Whey, Butter, Cheese and Exchange Exchange Commodity Mercantile
Lumber are being traded? Exchange Exchange
10 Which are the energy contracts traded on ethanol crude oil natural gas All the three all the three
international exchanges?
11 Which is the Exchange in Brazil where Bolsa de Mercadorias Mercado A Rosario Futures South African Bolsa de Mercadorias & Futuros
forward trading in gold, coffee ethanol and & Futuros (BM & F) Termino De Exchange Futures Exchange (BM & F)
live cattle are being traded? Buenos Aires (SAFEX)
12 Which exchange provides the reference Euronext.liffe New York Intercontinental Chicago Euronext.liffe
prices for world Robusta coffee trade? Mercantile Exchange (ICE) Mercantile
Exchange Exchange (CME)
(NYMEX)
BSE - INTERNAL
13 Which is the largest futures exchange in Bourse de Montréal Winnipeg Bolsa de Cereales, Mercado a Bourse de Montréal (MX)
Canada? (MX) Commodity Término de
Exchange Buenos Aires
(WCE) (MATba)
14 Which was the first independent clearing Board of Trade London Japan Commodity None of these Board of Trade Clearing
house that was set up in 1925? Clearing Clearing House Clearing House Corporation, USA
Corporation, USA
15 In which commodity the first futures sugar corn canola cocoa corn
contract was launched at Chicago Board of
Trade (CBOT)?
16 When was the London Metal Exchange set 1835 1877 1865 1870 1877
up?
17 Sydney futures Exchange was recognised cocoa rubber wool corn wool
worldwide for which commodity?
18 Which is the highly liquid commodity West Texas platinum palladium natural gas West Texas Intermediate Crude
contract at New York Mercantile Exchange Intermediate Crude Oil
(NYMEX)? Oil
19 Which are the countries having most liquid United States China United Kingdom All the three all the three
commodity futures exchanges, measured in
terms of traded contracts volumes?
20 Who first launched the Globex Alliance? New York Kansas City Minneapolis Grain Chicago Chicago Mercantile Exchange
Mercantile Exchange Board of Trade Exchange Mercantile (CME)
(NYMEX) (KCBT) (MGEX) Exchange (CME)
21 The exclusive marketplace in Canada for Vancouver Stock Toronto Stock Montreal Stock Alberta Stock Montreal Stock exchange
derivatives trading is a Exchange Exchange exchange Exchange
22 Chicago Board of Trade (CBOT) provides corn potato rice chana corn
the reference price for world trade in key
agri commodity viz.
BSE - INTERNAL
23 Which Exchange was first provided an open Intercontinental Chicago Kansas City Board New York Intercontinental Exchange
electronic platform for OTC energy trading? Exchange (ICE) Mercantile of Trade Mercantile
Exchange Exchange
(CME) (NYMEX)
24 NYBOT sets worldwide reference prices for tea emissions sugar cocoa sugar
which commodity
25 In 2004, which two Exchanges were Bolsa de Productos Bolsa de Chicago Board of Bolsa de Bolsa de Mercadorias &
integrated to establish joint electronic de Chile & Bourse de Mercadorias & Trade (CBOT) & Productos de Futuros, (BM&F) & Rosario
market in soybean? Montreal Futuros, New York Chile & Rosario Futures
(BM&F) & Mercantile Futures Exchange (ROFEX)
Rosario Futures Exchange Exchange
Exchange (NYMEX) (ROFEX)
(ROFEX)
26 What is the objective behind establishment to create a market To minimize to increase the All the three All the three
of joint electronic market in soybean in that offers efficient basis risk for the pricing power of
Latin America? hedging Latin American the largest
producer producer markets
community
market
27 Which is the oldest exchange in Bourse de Montréal Mercado a Bolsa de Valores Mercado a Mercado a Termino de Buenos
Argentina? (MX) Término de de São Paulo Término de Aires(MATba )
Buenos Aires (Bovespa) Rosario
(MATba) (ROFEX)
28 Among these, Mercado a Término de Uranium sunflower seed currency futures wine Sunflower seed
Buenos Aires (MATba) offers trade in
futures and options contracts in
29 Among these, Bolsa de Productos de Chile gold wheat copper silver wheat
offers futures trading in
BSE - INTERNAL
30 Among these, which was the oldest vibrant Indian Commodity Chamber of Multi Commodity National Chamber of Commerce, Hapur
regional exchange in India Exchange Ltd. Commerce,Hap Exchange of India Commodity &
(ICEX) ur Ltd. (MCX) Derivatives
Exchange Ltd.
(NCDEX)
31 Among these, which is the vibrant Amsterdam Eurex Exchange Euronext.liffe London Metal Euronext .liffe
derivatives exchange in Europe? Exchanges (AEX) (EUREX) Exchange
32 Among these, which exchange does not New York Stock Chicago Eurex Montreal Stock New York Stock Exchange
trade in derivatives? Exchange Mercantile Exchange
Exchange
33 Among these, which is the vibrant futures natural gas financial futures electricity brent crude oil brent crude oil
contract on ICE?
34 ICE partnered with which Exchange to Chicago Board of Chicago Climate New York NYBOT Chicago Climate Exchange
host its electronic marketplace for emissions Trade (CBOT) Exchange Mercantile (CCX)
trading. (CCX) Exchange
(NYMEX)
35 Which is the only exchange regulated International Italian MEFF Renta Wiener International Maritime Exchange
freight marketplace in the world? Maritime Exchange Derivatives Variable, Spain Börse,Austria (Imarex),Norway
(Imarex),Norway Market (IDEM)
36 In Europe, which exchanges have been Nordpool,Scandinavi European Powernext, France All the three All the three
created to act first as a forum for physical a Energy
and futures trade of electricity? Exchange
(EEX),
Germany
37 Among these, Risk Management Exchange, Potatoes Cotton Wheat Sugar Potatoes
Hannover (RMX),Germany offers futures
trading in
38 Who introduced the largest spot market in Budapest Warsaw London Metal National Warsaw Commodity Exchange
Europe? Commodity Commodity Exchange Mercantile (WGT)
Exchange (BCE) Exchange Exchange
(WGT) (NAMEX)
BSE - INTERNAL
39 Which commodity exchange in eastern Bratislava The Exchange Sofia Commodity Romanian Bratislava Commodity
Europe offers spot trading in timber Commodity of Ljubljana, Exchange (SCE), Commodities Exchange,Solvakia
products? Exchange, Solvakia Slovenia Bulgaria Exchange
40 How the electronic futures and options with merger of the It is independent with the merger of none of these with merger of the derivatives
exchange, viz, FORTS was set up? derivatives division exchange of derivatives division of the St Petersburg
of the St Petersburg Russia exchanges in St. stock exchange and the
stock exchange and Petersburg Moscow-based electronic stock
the Moscow-based currency exchange market RTS
electronic stock and National
market RTS Mercantile
(Russian Trading exchange
System).
41 among these, one of the energy contract is furnace oil urals oil diesel oils aviation oil furnace oil
not running on FORTS
42 Which is the contract running with urals oil soybean corn gold gold
significant liquidity on FORTS?
43 In which countries energy exchanges have China Nepal India Japan India
been established?
44 In which country currently there is no Ukraine Kazakhstan India Uzbekistan Ukraine
futures and options trade, either in
commodity or financial derivatives?
45 Which was the first commodity exchange in Istanbul Gold Turkish Izmir mercantile none of these Istanbul Gold Exchange (IGE)
Turkey? Exchange (IGE) Derivatives Exchange
Exchange
(TurkDex)
46 What is the key regulatory reform Set up Japan ban on segregation change in the Set up Japan Commodity
undertaken in the commodity sector in Commodity Clearing foreigners to between client and rules governing Clearing House (JCCH)
Japan during 2005? House (JCCH) participate in member account membership
trading
47 CSRC is regulator of commodity China India Japan Korea China

derivatives market of which country
BSE - INTERNAL
48 Which are the largest futures and option Tokyo Commodity Tokyo Grain Central Japanese All the three all the three
exchanges in Japan? Exchange (TOCOM) Exchange Commodity
(TGE) Exchange (C-
COM)
49 Which Exchange launched world’s first Tokyo Grain Zhengzhou Shanghai Futures KEX (Kansai Tokyo Grain Exchange (TGE)
vegetable index futures contracts? Exchange (TGE) Commodity Exchange(SHFE) Commodities
Exchange (ZCE) Exchange)
50 Among these, KEX offers trading in corn azuki beans rice groundnut azuki beans
51 The contracts are being traded on TOCOM electricity futures platinum gasoline Rubber Rubber
are
52 Which are the major commodity exchanges Dalian Commodity Zhengzhou Shanghai Futures All the three All the three
in China? Exchange (DCE) Commodity Exchange (SHFE).
Exchange (ZCE)
53 DCE is world largest agricultural futures Corn Soybean Soy meal Palm oil Soybean
exchange by contract volume in
54 Among these, which is highly liquid white sugar rapeseed oil wheat cotton wheat
contract traded on Zhengzhou Commodity
Exchange (ZCE)?
55 Malaysian Government’s National Biofuels palm oil RBD palmolein crude palm kernel palm kernel palm oil
Policy placed a heavy emphasis on the use oil
of which commodity as a source for biofuel
production.
56 Which commodity Exchange with Chicago Board of New York Intercontinental Eurex Chicago Board of Trade (CBOT)
Singapore Exchange (SGX) signed MOU to Trade (CBOT) Mercantile Exchange (ICE)
create a new exchange, the Joint Asian Exchange Futures
Derivatives Exchange (JADE)? (NYMEX)
57 In which country is the spot diamond Singapore Thailand South Africa Mauritius Singapore
exchange located?
58 Besides Gold, Dubai Gold and Commodity Iron Currency Copper Furnace oil Currency Futures
Exchange (DGCX) offers futures trading in Futures
BSE - INTERNAL
59 Dubai Mercantile Exchange middle east sour brent crude oil heating oil jet fuel middle east sour crude oil
(DME),commenced trading with Oman crude Oil
crude oil futures contract, providing price
discovery for
60 Which is the only commodity exchange in Kuala Lumpur South African Taiwan Futures Zambian South African
South Africa? Commodity Exchang Futures Exchang Exchange Commodity Futures Exchange (SAFEX)
e (KLCE) e (SAFEX) (TAIFEX) Exchange
(ZAMACE)
61 Which is the most liquid option and futures Rape Seed Oil Maize Currency Futures Sugar Maize
contracts offered by South Africa Futures
Exchange (SAFEX)?
62 Abuja Securities and Commodity Exchange soybean cocoa wheat sunflower seed soybean
(ASCE), Nigeria offers spot trading in
63 After inception of commodity option in US Argentina Finland Morocco Spain Argentina

in 1982, which country had launched option
contracts in agri commodities?
64 Which is the most liquid contract of Rubber White rice Tapioca chip Corn Rubber
Agricultural Futures Exchange of Thailand
65 During 2012, on which commodity Australian Securities Wiener Börse Offset Market none of these Australian Securities Exchange
exchange in Australia option trading has Exchange Exchange
been launched in electricity and gas?
66 On which commodity exchange in Brazil Mercado A Termino BM&FBOVESP Rosario Futures MEFF Renta BM&FBOVESPA
option contracts are launched in agriculture, De Buenos Aires A Exchange Variable
metal and energy?
67 In which commodity, option contract has Electricity Gold Platinum Crude oil Gold
been launched on Taiwan futures
Exchange?
68 On which commodity exchange in Mercado A Termino Rosario Futures MEFF Renta Wiener Börse Rosario Futures Exchange
Argentina option contracts are launched in De Buenos Aires Exchange Variable
agriculture, metal and energy?
BSE - INTERNAL
69 In which commodity option contracts have crude oil silver gasoil heating oil crude oil
been launched on the platform of Moscow
Exchange (MICEX-RTS)?
70 On which exchange in UAE option trading Kansas City Board of Dubai Gold & Dubai Mercantile The Kazakhstan Dubai Gold & Commodities
in gold has been launched? Trade Commodities Exchange (DME) Stock Exchange Exchange (DGCX)
Exchange (KASE)
(DGCX)
71 Which are the option contracts traded on robusta coffee sunflower oil copper wheat robusta coffee
NYSE Liffe?
72 Which are the commodity exchanges in Chicago Board of Minneapolis Kansas City Board All the three All the three
USA, where option contract in wheat are Trade (CBOT) Grain Exchange of Trade
traded?
73 Name the exchange in USA, where option New York Chicago ICE Futures US Chicago Board of New York Mercantile Exchange
contract in iron ore are traded? Mercantile Exchange Mercantile Trade (CBOT) (NYMEX)
(NYMEX) Exchange
(CME)
74 Which commodity exchanges offer option Minneapolis Grain Eurex Exchange Chicago Board of Warsaw Eurex Exchange (EUREX)
on underlying commodity spot? Exchange (MGEX) (EUREX) Trade (CBOT) Commodity
Exchange (WGT)
75 Please read the given statement and then 0 partially true 1 Not sure 0
The commodity
exchanges are regulated by the Federal
Reserve of the respective countries
76 Chicago Mercantile Exchange (CME) The Commodity Chicago Board New York All the three All the three
Group is made of which exchange? Exchange (COMEX) of Trade Mercantile
(CBOT) Exchange
(NYMEX)
BSE - INTERNAL
77 In which Asian country, commodity Pakistan Sri lanka Taiwan Indonesia Sri lanka
derivatives exchange has not been set up so
far?
78 In which country the vibrant Alexandria Ethiopia Ghana Egypt Nigeria Egypt
cotton Exchange existed in early twentieth
century?
79 Which among the given options, is a Rogers International Dow Jones AIG Goldman Sachs All the Three All the Three
popular commodity index in the commodities Index Commodities commodities index
international market? Index
BSE - INTERNAL

MCQs On Commodities-For Reference and Enhancing Knowledge

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Sr. No.

Queries Answer Choices

7 National level multi commodity 1999 2001 2002 2003 2003

16 If spot price of 10g of gold on April -90 +110 80 85 -90

20 Which contract is an agreement Forward Futures option warrant Forward

21 Which contract is an agreement Futures Forward option swap Futures

28 Proprietary trade is denoted by the INST OWN CLI PRO OWN

60 How many commodities are currently 100 91 120 125 91

20 Jute cultivation in India is concentrated in Ganga Godavari Brahmaputra Mahanadi Ganga

46 Quality of agricultural commodities is AGMARK ISI BSI ISO AGMARK

51 West Bengal Kerala Maharashtra Punjab West Bengal

4 Which state contributes the Chhattisgarh Odisha Rajasthan Bihar Rajasthan

5 India is largely self-sufficient in coal petroleum natural gas lignite coal

9 Which is the leading copper China US Peru Chile Chile

25 Which commodity is considered as silver crude oil gold platinum gold

26 Which commodity is 100% copper nickel aluminium zinc aluminium

27 Which commodity is an alloy of nickel lead brass tin brass

42 Which metal is excellent conductor Brass zinc lead copper copper

58 Which is the vertically integrated Hindalco Vedanta NALCO HCL HCL

60 Which metal production needs nickel copper aluminium brass aluminium

63 Which country in the world China Peru Australia Bolivia China

72 To which country India exports Malaysia Indonesia Singapore Nepal Indonesia

47 CSRC is regulator of commodity China India Japan Korea China

63 After inception of commodity option in US Argentina Finland Morocco Spain Argentina

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