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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) Index
  2. (B) Currency
  3. (C) Stock
  4. (D) Commodity
Previously asked in CBSE board exam
2025 92 Q3 (v)
Generated by claude-sonnet-4-6 · 2026-06-15 07:08 · grounding rag
Model Answer

(D) Commodity — Commodity derivatives market trades contracts for which the underlying asset is a commodity, such as agricultural products (wheat, cotton) or precious metals (gold, silver).

Source: Chapter 5, What is Commodity Derivatives Market?

Explanation

This is a direct definition-based MCQ. The passage explicitly states "Commodity derivatives market trade contracts for which the underlying asset is commodity." Options A (Index), B (Currency), and C (Stock) are underlyings for financial derivatives, not commodity derivatives. Always remember this key distinction.

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