n NISM Certifications
V-A NISM Series V-A
Medium

Gold prices are used as benchmark for ________.

Practice question from Nism VA Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Gold Savings Fund

    Correct answer

  2. B

    Gilt Funds

  3. C

    Gold Mining Companies fund

  4. D

    All of the above

Why this is the answer

The performance of Gold ETFs/Gold savings funds would track the price of golD) Therefore, gold prices will be the appropriate benchmark for these funds. The performance of Gold sector funds or Gold mining companies fund is linked to the profitability of the gold companies and not to gold prices.

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