n NISM Certifications
XIII NISM Series XIII
Medium

How does the introduction of an organized futures market help stabilize a volatile spot commodity market?

Practice question from NISM Series XIII for SIF - Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Increases spot market volume

  2. Moves speculation to a controlled environment with risk management

    Correct answer

  3. C

    Encourages new business activity

  4. D

    Transfers risk

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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