SEBI - Investor Certification Examination
SEBI - Investor Certification Examination
Q 91. What is a challenge farmers face related to crop prices?
- Overproduction
- Dependence on local middlemen
- High transportation costs
- Competition from imports
Q 92. What is the process of protecting against financial loss or price risk in commodities called?
- Speculation
- Hedging
- Investment
- Trading
Q 93. Who regulates the trading rules and procedures of recognized Commodity Derivatives Exchanges and Commodity Brokers in India?
Reserve Bank of India (RBI)
Securities and Exchange Board of India (SEBI)
Ministry of Finance
Bombay Stock Exchange (BSE)
Q 94. Which exchange primarily deals with non-agricultural products like gold, silver, and crude oil?
National Commodity and Derivative Exchange (NCDEX)
Bombay Stock Exchange (BSE)
Multi Commodity Exchange of India Ltd (MCX)
Indian Commodity Exchange (ICEX)
Q 95. Which of the following is NOT a type of contract in the commodity derivatives market?
Forward Contracts
Futures Contracts
Options Contracts
Call Options
Q 96. Where are Futures Contracts traded?
Over the counter
On the commodity derivatives exchanges
At the central bank
In local markets
Q 97. What type of option gives the buyer the right to buy the underlying security?
Put Option
Forward Option
Swap Option
Future Option
Q 98. What is a premium in the context of Options Contracts?
The amount paid for the underlying asset
The fee charged by the broker
The cost paid by the buyer to purchase an option
The commission paid to the exchange
Q 99. Why are Futures and Options considered riskier than the cash segment?
They are not regulated
They have no expiration date
They are time-dependent and cannot be held indefinitely
They have higher transaction costs
Q 100. How can farmers participate in the Commodity Derivatives Market?
By forming a society/trust/FPO
By individually approaching brokers
By selling directly to consumers
By producing non-agricultural commodities