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Financial Market Management — CBSE Class 10 board question

Q1. [1]
Commodity derivatives market trade contracts for which the underlying asset is ______.
  1. (a) Interest
  2. (b) Currency
  3. (c) Stock
  4. (d) Commodity
Previously asked in CBSE board exam
2023 92 Q2 (v)
Generated by claude-sonnet-4-6 · 2026-06-15 07:08 · grounding rag
Model Answer

(d) Commodity

Commodity derivatives market trade contracts for which the underlying asset is commodity, such as agricultural goods (wheat, cotton) or precious metals (gold, silver).

Source: What is Commodity Derivatives Market?, Chapter 5

Explanation

This is a direct definition-based MCQ. The passage explicitly states "commodity derivatives market trade contracts for which the underlying asset is commodity." The other options (interest, currency, stock) are underlying assets for financial derivatives, not commodity derivatives. Always remember this distinction for exam purposes.

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