Quiz 2 | PGDM 06 Batch I

COMMODITIES MARKETS
(Dr.V.Shunmugam)(20.12.2023) Contract
Design, Economic Benefits, Agriculture,
Energy Fundamentals
Total points 24/30

Dear All, The quiz consists of 20 MCQs of 2 marks each (no negative marking), and the
time allotted will be 20 minutes.

Please select the most appropriate option under each question and submit. Please
retain full-screen print (with the date & time) of the submission confirmation with you for
your records.

The respondent's email (rakshiths-pgdm-2022-24@nism.ac.in) was recorded on

submission of this form.

Which of the below is a newly traded variety of crude oil in exchange-traded0/1

crude oil derivative markets?

WTI

Murban

Bonny Light

Dubai-Oman

Correct answer

Bonny Light
 Cultivation of which crop amongst the below contributes most to Climate 1/1
Change?

Wheat

Rice

Barley

Maize

Which of the below is not a quality parameter in the currently traded cotton 1/1
futures contracts?

Fibre Length

Moisture

Color of fiber

Percentage of Disease Infection

Edible oils are India's ------------ largest commodity imports. 0/1

First

Second

Third

Fourth

Correct answer

Third
Demand for which of the edible oils below is guided by increasing climate 1/1
concerns - Choose Two

Palm Oil

Groundnut Oil

Rice Bran Oil

Mustard Oil

Soybean Oil

Global prices of natural rubber are not greatly influenced by: 1/1

Automotive Sector Growth Prospects

Crude Oil Prices

Natural Gas Prices

China Production and Consumption

Which of the following is not a favorable parameter of a commodity for the 1/1
launch of a derivative contract on it?

No or less market intervention

The market for the commodity is global in nature

Low Price Volatility

Large number of buyers/sellers

 Which of the below is not a direct economic benefit that trading in 1/1
commodity derivatives

Commodity Price Risk Management

Transparency of prices enabling effective transaction decisions

Increased financing of commodity stocks

Discovery of future prices of commodities.

Soymeal is largely used in the production of: 1/1

Soy-based foods

Lecithin - A Mixture of essential fats

Soy Milk

Animal Feeds

Which of the below is not a common source of price dissemination by the 0/1
commodity exchanges in India?

Exchange Website

Newspaper/Dailies

Business Magazines

Ticker Boards at Mandis

Correct answer

Business Magazines
 The following are essential parameters in selecting new commodity for the 1/1
launch of derivatives on it?

Overall Market Size

Price Volatility in the spot markets

Geographical Coverage

All of the above

The major reason for lack of significant farmers' participation in 0/1

commodity futures markets to deliver their commodities is:

Lack of access to finance

Poor banking inclusion

Delivery is limited to select growing centers

Availability of quality and quantity to deliver against a futures position

Correct answer

Delivery is limited to select growing centers

Exports of which of the below commodity was recently banned in India? 1/1

Cotton

Wheat

Rice

Natural Rubber
Identify the commodity on which there is no derivative contract traded on 1/1
global exchanges.

Wheat

Sugar

Tea

Rice

Which of the below is not an economic benefit of an efficient commodity 1/1

futures markets?

Efficient Value Chain

Better Cultivation Practices

Better Price Realisation by the Farmers

Better penetration of standardisation and quality testing facilities in the ecosystem

Who is the regulator of NG transportation pipelines? 1/1

Directorate General of Hydrocarbons

Gas Authority of India Limited

Ministry of Petroleum and Natural Gas

Petroleum and Natural Gas Regulatory Board

OPEC supplies account for approximately ----- of the global crude oil 1/1
markets.

one third

half

40 percentage

a quarter

Which amongst the below is a major producer of Palm Oil in the world? 1/1
Choose any two

Thailand

Indonesia

Vietnam

India

Malaysia

Which of the following are considered while designing a Commodity 1/1

Derivatives Contract

Physical Markets Perspective

Regulatory Perspective

Hedgers Perspective

All of the above

In the absence of futures trading in most agricultural commodities, farmers 1/1
take sowing decisions based on -----------

Previous Season Prices

Forward Prices

Current Retail Prices

Amount of the commodity available in storage

Delivery based LNG futures are currently traded in 1/1

Singapore Exchange SGX

Inter Continental Exchange ICE

Chicago Mercantile Exchange CME

Tokyo Commodities Exchane TOCOM

Imports constitute approximately --- percent of India's crude oil 1/1

consumption.

75

85

50

90
 List of commodities on which derivatives can be launched is available on ---0/1
-

SEBI Circular

GOI Gazette Notification

Exchange Circulars

Ministry of Consumer Affairs Order

Correct answer

GOI Gazette Notification

Which amongst the below commodity derivative instruments to be 1/1

introduced recently

Options in Commodity Futures

Index Futures

Index Options

Options in Goods

Until about a decade ago, global natural gas prices were primarily driven 1/1
by:

Number of Shale Rigs in Production

Prices of Carbon Instruments

Freight Costs

Crude Oil Prices

 Share which of the below energy sources is increasing in India's energy *1/1
basket from 2010 onwards?

Natural Gas

Nuclear

Hydel

Crude Oil

Wheat prices are largely influenced by --- as they are largely produced in the 0/1
Northern Hemisphere and consumed across the globe.

Fertilizer

Energy

Land

Water

Correct answer

Energy

Which of the below is not a Rabi (winter season) Crop? 1/1

Wheat

Chana

Groundnut

Mustard
Which of the below is a non-OPEC crude oil variety? 1/1

Arab Heavy

Oman

Bonny Light

Murban

Which of the below is not a source of natural gas demand? 1/1

Fertilizer Manufacturing

LPG Marketing Agencies

City Gas Distribution

Power Generation

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