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Differentiate between commodity and stock - SS1 Commerce Past Questions and Answers - page 1

1

What is a commodity?

A

A company's ownership stake

B

A raw material or primary agricultural product

C

A form of currency

correct option: b

A raw material or primary agricultural product

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2

What factors can influence the price of commodities?

A

Company performance and earnings

B

Changes in supply and demand dynamics

C

Company performance and earnings

correct option: b

Changes in supply and demand dynamics

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3

What is the primary purpose of investing in stocks?

A

Protecting against inflation

B

Capital appreciation and dividends

C

Diversification and hedging

correct option: b

Capital appreciation and dividends

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4

Where are commodities typically traded?

A

Stock exchanges

B

Cryptocurrency exchanges

C

Commodities exchanges

correct option: c

Commodities exchanges

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5

What drives the value of stocks?

A

Changes in supply and demand dynamics

B

Global economic conditions

C

Company performance and news

correct option: c

Company performance and news

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6

Define a commodity in simple terms.

A raw material or primary agricultural product that can be bought or sold.

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7

A raw material or primary agricultural product that can be bought or sold.

A raw material or primary agricultural product that can be bought or sold.

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