n NISM Certifications
X NISM Series X
Medium

Which statement accurately describes the differences between commodities and financial assets?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Some commodities are considered safe havens for investment

  2. B

    Commodities show low correlation with financial assets

  3. C

    Commodities do not generate current income

  4. All of the above

    Correct answer

Why this is the answer

Commodities such as gold are safe havens, they often have low correlation with stocks and bonds, and generally do not produce income like dividends or interest.

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