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Requirements for trading - SS1 Commerce Past Questions and Answers - page 1

1

What is a requirement for trading on a commodity exchange?

A

Having a membership with a registered broker

B

Owning a warehouse for storing commodities

C

Demonstrating compliance with taxation regulations

correct option: a

Having a membership with a registered broker

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2

What is the purpose of the grading system in commodity exchanges?

A

Assessing the financial resources of traders

B

Determining the delivery schedule for commodities

C

Evaluating the quality and characteristics of commodities

correct option: c

Evaluating the quality and characteristics of commodities

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3

What is the role of warehousing in commodity trading?

A

Assessing the financial stability of traders

B

Setting the standardized contract terms

C

Providing storage facilities for commodities

correct option: c

Providing storage facilities for commodities

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4

Setting the standardized contract terms

A

Setting the standardized contract terms

B

Grading commodities based on their quality

C

Standardizing contract terms for trading

correct option: a

Setting the standardized contract terms

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5

What does standardizing refer to in commodity exchanges?

A

Assessing the financial stability of traders

B

Establishing consistent contract terms for trading

C

Evaluating the quality and characteristics of commodities

correct option: b

Establishing consistent contract terms for trading

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6

Name one requirement for trading on a commodity exchange.

Having a membership with a registered broker.

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7

Define the grading system in commodity exchanges.

The grading system involves evaluating the quality and characteristics of commodities.

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