Are you looking for BSE General Quiz On Commodity Derivatives (BSE World Investor Week)? As you know Securities Market Regulator – SEBI, is a member of the International Organization of Securities Commissions (I0SCO).

Every year, the world over, World Investor Week is celebrated under the aegis of I0SCO, in order to give further impetus to the various investor education and awareness initiatives. SEBI has been participating in celebrations along with the exchanges, depositories, investor associations, commodity derivative trainers, resource persons, etc – since 2017.

As a part of this celebration, BSE Investors’ Protection Fund has also planned many activities during this week, and one of them is the quiz. Where participants can win cash prizes just by answering some simple MCQ questions. You can also visit the official page for quiz registration

BSE Quiz On Commodity Derivatives Answers (BSE World Investor Week Solution)

BSE General Quiz On Commodity Derivatives Answers

1. Who regulates the commodity derivatives market in India

  1. RBI
  2. IRDAI
  3. PFRDA
  4. SEBI

2. Since which year SEBI has been regulating the commodity derivatives trading in India

  1. 1992
  2. 1953
  3. 2015
  4. 1956

3. Whether SEBI regulates spot market commodity trading also

  1. Yes
  2. No
  3. Not sure
  4. Probably Yes

4. When did BSE & NSE launched commodity derivatives trading on their platform

  1. 2018
  2. 2017
  3. 2016
  4. None of these

5. What is Arbitrage?

  1. entering into sell and purchase transaction in spot market
  2. entering into purchase transaction in spot & futures market
  3. simultaneously entering into sell and purchase transactions in two or more markets
  4. entering into sell transaction in spot and futures market

6. Please read the given statement and then select the right 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”

  1. False
  2. TRUE
  3. partially true
  4. Not sure

7. Which of the given factors affect the prices of agri commodities?

  1. Weather condition
  2. agriculture production
  3. changes in import & export policies
  4. All the three

8. Besides price risk, which are the risks that exist in spot market?

  1. Delivery risk
  2. Transportation risk
  3. Credit risk
  4. all the three

9. Who is obligated to provide liquidity in the derivatives market by giving two way quotes all the time

  1. Position trader
  2. Day trader
  3. Market maker
  4. Arbitragers

10. Future price higher than the spot price, is called as

  1. conversion
  2. Divergence
  3. contango
  4. Backwardation

11. Spot price higher than futures price is called as

  1. conversion
  2. Divergence
  3. contango
  4. Backwardation

12. In which type of past system, goods were exchanged between two parties with mutually coincident needs

  1. Barter
  2. OTC
  3. Monetary
  4. Option

13. Demand for gold is

  1. relatively elastic
  2. perfectly inelastic
  3. inelastic
  4. perfectly elastic

14. Which Exchange launched futures trading in base metal index

  1. NCDEX
  2. NSE
  3. MCX
  4. BSE

15. Which commodity from the given options is included in METLDEX

  1. copper
  2. steel
  3. brass
  4. tin

16. In the past, which was the vibrant exchange dealing in turmeric futures

  1. Spices and Oilseeds Exchange ltd., Sangli
  2. Kanpur Commodity Exchange
  3. Hapur Commodity Exchange
  4. none of these

17. Which Government initiative/policy announcement gave the first major impetus to agricultural futures market?

  1. National Agriculture Policy, 2000
  2. National Agriculture Market (eNAM)
  3. land reforms
  4. encouragement to co-operative joint farming

18. In India, name the commodity in which futures trading was started first and when

  1. Rice,1888
  2. Copper, 1870
  3. Maize ,1877
  4. Cotton, 1875

19. Prior to Independence, which were the commodities in which futures trading took place

  1. Maize,rice,bajra
  2. Cotton, Jute, Gold,oilseeds, wheat
  3. copper,steel,zinc
  4. Urad Tur, Chana

20. Among these associations, which association was set up first for futures trading

  1. East India Jute trade Association
  2. Gujarati Vyapari Mandal
  3. Bombay Cotton Trade Association Ltd
  4. Chamber of Commerce, Hapur

21. Where and when futures trading in oilseeds was introduced

  1. Chennai -1889
  2. Bombay1900
  3. Ahmedabad 1887,
  4. Indore1886

22. Where and when futures trading in wheat was introduced

  1. Hapur 1913
  2. Bombay 1915
  3. Hissar1911
  4. Rohtak 1914

23. Where and when futures trading in raw jute and jute products was introduced

  1. Gwalior1911
  2. Latur 1916
  3. Kolkata 1912
  4. Sirsa 1910

24. Post independence, through which act commodity derivatives trading was regulated in India until 2015?

  1. Forward Contracts (Regulation) Act, 1952
  2. Bombay Forward Contracts Control Act,1947
  3. Defence of India Act, 1915
  4. none of these

25. Since which year Bullion market has been functioning in Bombay

  1. 1890
  2. 1920
  3. 1915
  4. 1907

26. Among these, which is a key feature of the modern exchanges

  1. Demutualisation
  2. access to a limited number of clients and members
  3. open out cry
  4. no loss no profit

27. Among the given options, which Government/regulatory bodies regulates spot market trading in agricultural commodities

  1. Individual State Government
  2. Central Government
  3. RBI
  4. Local bodies such as municipalities and gram panchayats

28. In which year, Government of India issued licences for the first time for setting up national level multi commodity exchanges?

  1. 2005-06
  2. 2000-01
  3. 1999-2000
  4. 2002-03

29. Please read the given statement and then select the right option as your answer: “Securities Contract(Regulation ) Act, 1956 empowers SEBI to grant recognition to stock exchanges in India”

  1. False
  2. Partially true
  3. TRUE
  4. Not sure

30. Which among the given options is a key mandate for SEBI?

  1. Regulation of securities market
  2. protect the interest of investors
  3. Promote the development of securities market
  4. all the three

31. In which year Electronic mode/platform for lodging and tracking complaints by the investors
(SCORES) was launched

  1. 2010
  2. 2011
  3. 2012
  4. 2014

32. Which among the given options, is not a mandatory requirement for lodging complaints on SCORES?

  1. e-mail address
  2. Name & address
  3. Aadhaar Number
  4. PAN

33. Which is major benefit of SCORES?

  1. Speedy redressal
  2. Reduces the turnaround time
  3. Available 24*7
  4. all the three

34. What is a limit order

  1. gets executed at specific price
  2. gets executed at current market price
  3. gets executed at best available price
  4. none of these

35. Please read the given statement and then select the right option as your answer: “Stop-loss orders are good means of protecting one’s profit or limiting one’s loss, while waiting for market to recover”

  1. False
  2. partially true
  3. True
  4. Not sure

36. Which is the oldest benchmark or reference gold price for stakeholders in India?

  1. Bombay Bullion Association
  2. LBMA
  3. MCX
  4. NCDEX

37. What is a derivatives contract?

  1. Derivatives are financial contracts which derive their value from an underlying asset
  2. It is spot contract
  3. contractual obligations
  4. none of these

38. What is the role of commodity derivatives market?

  1. Assists,regulates,or controls the business of buying ,selling or dealing only in commodity derivatives
  2. Facilitating buying and selling in spot market
  3. Providing logistic services and other facilities
  4. promoting OTC markets

39. What has been set up by regulator and stock exchange to provide rural farmers access to real time prices

  1. manual price ticker boards
  2. electronic price ticker boards
  3. electronic hedging boards
  4. electronic risk management boards

40. One of the key parameters of suitability of commodity for futures trading is that it should be

  1. fairly and freely traded
  2. available on international exchanges
  3. should be in demand from financial sector
  4. in demand from HNI

41. At the time of designing a futures contract, parameters are based mainly on the practices being followed in

  1. the physical or cash market
  2. OTC market
  3. international spot market
  4. international derivatives market

42. Among these,which is also referred to as physical market or cash market?

  1. OTC market
  2. electronic market
  3. spot market
  4. forex market

43. When was the first organised commodity futures market started in India?

  1. 1874
  2. 1867
  3. 1875
  4. 1888

44. In India, National Board of Trade was recognised as vibrant exchange for trading in

  1. Soy complex futures
  2. Rapeseed complex futures
  3. sunflower seed complex futures
  4. groundnut complex futures

45. What is cartelisation?

  1. A group of traders who control supply and manipulate price in their favour
  2. Buyers and sellers negotiate the price
  3. A group of buyers manipulate the price
  4. A group of sellers manipulate the price

46. What is E-Auction?

  1. An e-auction is a transaction between sellers (the auctioneers) and bidders (suppliers in business to business scenarios) that takes place on an electronic marketplace.
  2. Action takes place between buyers and sellers in the APMC mandi
  3. Action takes place between buyers and sellers in the market yard
  4. None of these

47. What is churning?

  1. It is a practice of a broker overtrading in a client’s account for a purpose of generating commission
  2. Reasonable trading by broker to protect client interest
  3. Keeping position outstanding for favourable price movement
  4. None of these

48. What is cornering?

  1. To infuse supply in the market and save interest of seller
  2. To secure such relative control of commodity that its price can be manipulated
  3. To protect the interest of buyers from being indulged in delivery default
  4. To protect the interest of buyers and sellers against unfavourable price movement

49. Trader, who holds an investment for an extended period of time with the expectation that it will appreciate in value, is called

  1. hedger
  2. position trader
  3. market maker
  4. None of these

50. What is round turn?

  1. It is completed transaction involving both a purchase and liquidating sale or a sale followed covering purchase
  2. It is incomplete transaction of sale purchase
  3. It is roll over from near month contract to far month contract
  4. none of these

51. Among these, which is not the parameter of efficient commodity derivatives market?

  1. free entry & exit
  2. large number of buyers and sellers
  3. information asymmetry
  4. no price opacity

52. What is kerb trading?

  1. Trading that takes place after official hours
  2. Trading that takes place between official hours
  3. Trading takes halt without any official reasons
  4. Stock exchanges intervene and stop trading

53. What is liquid market?

  1. A market where selling and buying is accomplished with minimal price change
  2. market where only sellers are dominant
  3. market where only buyers are dominant
  4. A market where selling and buying is accomplished with maximum price change

54. What is illiquid market?

  1. A market where selling and buying is accomplished with maximum price change
  2. A market with high impact cost
  3. A market with entry and exit barriers
  4. all the three

55. What is representative or basis price?

  1. A price reflecting general price trend of a commodity
  2. Price reflecting rising trend of a commodity
  3. Price reflecting falling trend of a commodity
  4. Price reflecting trend of a producing hub

56. What is volume?

  1. Total transaction of one trading day
  2. Total transaction of preceding day and subsequent day
  3. Total transaction up to 5:00 pm prior to closure of trading day
  4. none of these

57. Please read the given statement and then select the right option as your answer: “In technical analysis, volume is used to confirm different types of price pattern”

  1. False
  2. partially true
  3. True
  4. Not sure

58. What is open interest?

  1. Total no. of outstanding contracts of buy and sell have been entered into and not yet liquidated by an offsetting transaction or fulfilled by delivery
  2. All the outstanding contracts of buy and sell are squared off
  3. Total no. of outstanding contracts of buy and sell are fulfilled with delivery
  4. Total no. of outstanding contracts of buy and sell are fulfilled with cash settled

59. Open interest of 1000 means

  1. 1000 buyers and 100 sellers on that date
  2. 100 buyers and 1000 sellers on that date
  3. 1000 buyers and 1000 sellers on that date
  4. 1000 buyers and 1000 sellers on preceding date

60. Among these, which are the forms of clearing members in commodity derivatives market

  1. self clearing member
  2. trading cum clearing member
  3. professional clearing member
  4. all the three

61. Among these, which is incorrect regarding futures contract?

  1. futures contract are agreements made today to buy or sell an asset in future
  2. futures contracts are customised and are traded at bank desks
  3. Commodity futures help value chain participants to protect themselves against unpredictable changes in prices
  4. Commodity futures facilitates seasonal supply chain management

62. Among these options, which action will offset a long position in a futures contract that expires in June?

  1. sell any futures contract, regardless of its expiration date
  2. Hold a futures contract until it expires
  3. Sell futures contract that expires in June
  4. buy any futures contract, regardless of its expiration date

63. Which among the given options, causes the futures price of an asset to increase, everything else held constant?

  1. Higher expected spot price for the underlying asset
  2. Loss in income while carrying underlying asset
  3. Lower expected spot price for the underlying asset
  4. Higher income received while carrying underlying asset

64. Among these, which statement about gross domestic product (GDP) is wrong?

  1. GDP is composed of consumption, investment, government spending, and net trade.
  2. The most widely-used measure of the economic health of the overall economy is GDP.
  3. GDP counts goods and services produced by nationals in a foreign country, and not goods and services produced by foreigners in the domestic country.
  4. GDP is the value of all goods and services produced in an economy over a particular time period

65. What is inflation?

  1. decrease in value of money
  2. Increase in value of money
  3. increase in purchasing power
  4. increase in economic activity

66. Among the given regulators, who is responsible for managing inflation?

  1. SEBI
  2. Ministry of Finance
  3. State Government
  4. Reserve Bank of India

67. Among these, which is incorrect method to control inflation?

  1. control of money supply
  2. increase in tax rates
  3. decrease in interest rate
  4. wage control

68. What is recession?

  1. Higher purchasing power
  2. decline in economic activity spread across the country for two consecutive quarters
  3. positive real gross domestic products (GDP) rate
  4. increase in consumer demand

69. among these, which is an example of fiscal policy

  1. Changing reserve requirement
  2. Controlling money supply
  3. Tax increase
  4. Consumer spending

70. Hedging through futures contracts

  1. increases risk of loss if prices fall
  2. eliminates profit maximization potential
  3. increases risk of loss if prices rise
  4. ensures profit maximization potential

71. Which among the given options, is not a regulator in India?

  1. SEBI
  2. RBI
  3. CFTC
  4. IRDA

72. Please read the given statement and then select the right option as your answer: “Market integrity, Financial integrity and Customer protection are the key to success of commodity derivatives market”

  1. False
  2. Partially true
  3. True
  4. Not sure

73. A party aggrieved by the appellate arbitral award may file an application to the

  1. Court of Law
  2. SEBI
  3. Stock Exchange
  4. Clearing Corporation

74. What is E-registry?

  1. It maintains electronic records of ownership of goods
  2. A physical statement of deposit of goods in warehouse
  3. Confirmation by clearing corporation about deposit of goods in warehouse
  4. None of these

75. What is NWRs (Negotiable warehouse receipt)?

  1. Negotiable warehouse receipt which effects transfer of ownership of such goods by electronic process
  2. Receipt given by commission agent through APMC
  3. Receipt given by commodity exchange
  4. Receipt given by clearing corporation

76. Which is not the objective of introduction of eNWRs? (Electronic Negotiable warehouse receipts)?

  1. To replace paper based warehouse receipt which caused substantial problem
  2. hassles free transfer
  3. To facilitate easy availability of loan to farmers through banks
  4. To promote role of moneylenders

77. Who is monitoring the repository system?

  1. WDRA (Warehousing (Development & Regulatory Authority,2010)
  2. SEBI
  3. RBI
  4. state government

78. When WDRA issued the guidelines for introduction of electronic negotiable warehouse receipts(eNWRs)

  1. Oct-16
  2. Nov-14
  3. Mar-10
  4. Apr-08

79. Who incorporated National E-Repository Ltd (NERL) ?

  1. NCDEX
  2. MCX
  3. NSE
  4. BSE

80. Who among these is not user of NERL?

  1. moneylenders
  2. Repository participants
  3. Banks
  4. Clearing member/Clearing corporation

81. Which among the given options, represents major responsibility of a repository?

  1. Creation of e-NWRs
  2. Transfer of e-NWRS between users of the repository
  3. Security and authenticity of e-NWR
  4. All the three

82. Among these, which is not activity of repository participants?

  1. account opening
  2. Off market transfer
  3. pledge stocks with money lenders
  4. withdrawal intimation

83. How repository works?

  1. Repository application is web based application, which provides end to end solution for all the transaction related to electronic warehouse receipt
  2. Clearing corporation monitors repository work
  3. Repository works under web based network of stock exchange
  4. None of these

84. Which stock exchange migrated Comtrack to NERL

  1. NSE
  2. MCX
  3. ICEX
  4. NCDEX

Wrap Up

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