Financial Markets And Institutions Set 3
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This set of Financial Markets and Institutions Multiple Choice Questions & Answers (MCQs) focuses on Financial Markets And Institutions Set 3
Q1 | In what city are the two largest commodities exchanges?
- Chicago
- New York
- Kansas City
- Minneapolis
Q2 | The financial futures market has evolved over recent time because of
- volatility and risk in the foreign exchange markets
- volatility of interest rates
- appeal to speculators due to low margin requirements
- all of the above
Q3 | While hedging through interest rate futures reduces or eliminates the risk of loss, it also
- is illegal in some cases.
- has not been accepted by most corporate financial managers.
- eliminates the possibility of an abnormal gain.
- none of the above.
Q4 | Margin requirements on commodities contracts
- are much higher than those on common stock transactions.
- vary over time and even among exchanges for a given commodity.
- typically, are 2 to 10 percent of the value of the contract.
- none of the above are true.
Q5 | Which of the following can be the underlying for a commodity derivative contract?
- Interest Rate
- Euro-Indian Rupee
- Gold
- NIFTY
Q6 | Daily mark to market settlement is done ------------
- Till the date of contract expiry
- As long as the contract makes a loss
- On the last day of week
- On the last trading day of the month
Q7 | ----------is the actual process of exchanging money and goods.
- Transfer
- Settlement
- Netting
- Clearing
Q8 | -----------work at making profits by taking advantage of discrepancy between prices of thesame product across different markets.
- Arbitragers
- Speculators
- Exchange
- Hedgers
Q9 | Commodity exchanges enable producers and consumer to hedge their -----------given theuncertainty of the future.
- seasonal risk
- profit risk
- production risk
- price risk
Q10 | Which of the following is not true about the national level exchanges?
- Offers online trading
- Recognised on permanent basis
- Offers single commodity for trading
- Volumes higher than regional exchanges
Q11 | ----------- Exchanges provide real time, online, transparent and vibrant spot platform forcommodities.
- Electronic Spot
- Regional
- Futures
- Stock
Q12 | ----------can only trade through their account or on account of their clients and however cleartheir trade through PCMs/STCMs.
- Trading cum Clearing Member
- Trading Member
- Commodity Participant
- Associate Member
Q13 | The minimum net worth requirement for PCM on the NCDEX is-----------.
- 50 Lakh
- 500 Lakh
- 5000 Lakh
- 5 Lakh
Q14 | Members of commodity market can opt to meet the security deposit requirement by way of -----------
- Cash
- Bank Guarantee
- Fixed Deposit Receipts
- All of the above
Q15 | In the case of certain commodities like gold and silver, delivery is staggered over last ------ days of the contract.
- Two
- Three
- Five
- Thirteen
Q16 | Unit of trading for Wheat at NCDEX is---------
- 1 MT
- 3 MT
- 1 kg
- 10 MT
Q17 | At present how many national commodity exchanges are operating in India?
- 8
- 7
- 6
- 10
Q18 | Regulatory body of commodity market in India is-------------
- FMC
- NCX
- ICE
- ICRA
Q19 | Forward Market Commission (FMC) established in the year-----------
- 1948
- 1964
- 1953
- 1952
Q20 | FMC merged with SEBI in the year------------
- 1994
- 2008
- 2015
- 2016
Q21 | The year of establishment of National Multi- Commodity Exchange (NMCE) was---------
- 2002
- 2003
- 2004
- 2005
Q22 | The Headquarters of NMCE is -------------
- New Delhi
- Ahmedabad
- Mumbai
- Calcutta
Q23 | -----------is the world’s largest exchange in silver and gold
- NMCE
- MCX
- ICEX
- NCDEX
Q24 | ---------------holds 86% market share of commodity exchange in India
- NMCE
- MCX
- ICEX
- NCDEX
Q25 | Headquarters of Multi Commodity Exchange in India (MCX) is ----------
- New Delhi
- Ahmedabad
- Mumbai
- Calcutta