Commodities, Forex & Crypto

Level: 1 (Recognition) Time Limit: 20 minutes Total Marks: 30

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Section A — Multiple Choice (1 mark each) — 12 marks

Q1. In the currency pair USD/INR, which is the base currency?

• (a) INR
• (b) USD
• (c) Both
• (d) Neither

Q2. Which exchange is India's primary platform for commodity futures trading?

• (a) NSE
• (b) BSE
• (c) MCX
• (d) NCDEX only

Q3. A "pip" in most forex pairs refers to a movement in which decimal place?

• (a) 1st decimal
• (b) 2nd decimal
• (c) 4th decimal
• (d) 6th decimal

Q4. Which of the following is classified as a major currency pair?

• (a) USD/INR
• (b) EUR/USD
• (c) EUR/TRY
• (d) GBP/ZAR

Q5. The underlying technology that records cryptocurrency transactions is called:

• (a) A central ledger held by a bank
• (b) A blockchain (distributed ledger)
• (c) A stock exchange database
• (d) A SWIFT network

Q6. Which of the following is a stablecoin?

• (a) Bitcoin (BTC)
• (b) Ethereum (ETH)
• (c) USDT (Tether)
• (d) Dogecoin

Q7. In commodity markets, the "spot price" refers to:

• (a) The price for delivery at a future date
• (b) The current price for immediate delivery
• (c) The average of last month's prices
• (d) The exchange settlement fee

Q8. Which agricultural commodity is commonly traded on Indian commodity exchanges?

• (a) Gold
• (b) Crude oil
• (c) Cotton
• (d) Silver

Q9. Ethereum is best known for pioneering:

• (a) Proof-of-fiat currency
• (b) Smart contracts
• (c) Central bank digital currency
• (d) SWIFT transfers

Q10. A "cold wallet" for cryptocurrency is characterized by being:

• (a) Always connected to the internet
• (b) Kept offline for higher security
• (c) Managed only by an exchange
• (d) A type of stablecoin

Q11. In a normal (contango) market, the futures price of a commodity is generally:

• (a) Higher than the spot price
• (b) Lower than the spot price
• (c) Exactly equal to spot always
• (d) Always zero

Q12. "DeFi" stands for:

• (a) Defined Finance
• (b) Decentralized Finance
• (c) Deferred Financing
• (d) Default Finance

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Section B — Matching (1 mark each) — 6 marks

Q13. Match Column A to Column B.

Column A	Column B
(i) Gold	(P) Exotic-type pair component
(ii) EUR/JPY	(Q) Precious metal commodity
(iii) USD/TRY	(R) Minor (cross) pair
(iv) Bitcoin	(S) First cryptocurrency
(v) MCX	(T) Commodity exchange
(vi) Pip	(U) Smallest standard price move in forex

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Section C — True/False WITH Justification (2 marks each: 1 verdict + 1 reason) — 12 marks

Q14. "In the pair GBP/USD, USD is the quote currency." True / False — justify.

Q15. "Stablecoins are designed to be as volatile as Bitcoin." True / False — justify.

Q16. "Futures contracts on MCX always settle only by physical delivery of the commodity." True / False — justify.

Q17. "A blockchain is controlled and stored by a single central authority." True / False — justify.

Q18. "Altcoins are all cryptocurrencies other than Bitcoin." True / False — justify.

Q19. "If the spot price of silver is ₹75,000/kg and cost-of-carry is positive, the fair futures price should be below ₹75,000/kg." True / False — justify.

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[
  {"claim":"Q19: positive carry makes futures above spot (76500 > 75000)","code":"spot=75000; carry=Rational(2,100); fut=spot*(1+carry); result = fut > spot"},
  {"claim":"Q19 fair futures equals 76500 for r*t=0.02","code":"spot=75000; fut=spot*(1+Rational(2,100)); result = (fut == 76500)"},
  {"claim":"Q3: a standard pip equals 0.0001","code":"pip=Rational(1,10000); result = (pip == Rational(1,10000))"},
  {"claim":"Contango check Q11: futures with carry exceeds spot","code":"spot=100; fut=spot*(1+Rational(5,100)); result = fut > spot"}
]