History of Commodity Derivatives Market in India
10 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

For a company producing biscuits using wheat flour, wheat is the primary ______

raw material

If the price of wheat rises, it would impact the company’s ______

profitability

Taking another example of airlines industry for which fuel cost forms a major part of operating ______

expenses

If the crude oil prices rise, Aviation Turbine Fuel price also rises, which impacts the ______ of the airline companies

<p>margins</p> Signup and view all the answers

To mitigate this risk, airline companies may hedge their price risk by buying futures contracts of ______ oil

<p>crude</p> Signup and view all the answers

To understand the relevance of commodity derivatives market to processor in a better way, an example of chana dal miller named ABC Corporation is provided in ______ 2

<p>Annexure</p> Signup and view all the answers

An excerpt from the news article providing details of how Starbucks, a world’s largest coffeehouse chain, buys coffee beans using a method called ______ is also provided in Annexure 3

<p>hedging</p> Signup and view all the answers

Banks lend to farmers, processors and manufacturers against the security of commodities pledged/ hypothecated to the ______ System

<p>Banking</p> Signup and view all the answers

It is obvious that when the price of the underlying commodity falls, the value of the banks’ collateral reduces ______

<p>substantially</p> Signup and view all the answers

The incidence of rising prices would result in increase in raw material cost and lead to fall in profitability and ability to ______

<p>repay</p> Signup and view all the answers

More Like This

Commodity Markets and Trading Quiz
15 questions
Derivative Products and Risk Management Quiz
5 questions
Commodity and Derivatives Market Overview
40 questions
Use Quizgecko on...
Browser
Browser