Vidyalelo
Commerce · Q189

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 189

Q189

Match the items of List-I with List-Il. List-I List-II a. Future 1. Consists of purchase or sale of commodities in two different markets with the expectations that a future change in price in one market will be offset by an opposite change in the other market b. Swap 2. A contract in which a seller agrees to deliver an asset to a buyer at a predetermined price at some future date as privately negotiated c. Hedging 3. A contractual agreement for exchanging a steam of payments with opposite and matching needs, to reap the benefit arising due to market discrepancies d. Forward 4. A contract covering the purchase and sale of physical commodities or financial instruments for future delivery on a future exchange floor

Match the items of List-I with List-Il.
List-I List-II
a. Future 1. Consists of purchase or sale of commodities in two different markets with the expectations that a future change in price in one market will be offset by an opposite change in the other market
b. Swap 2. A contract in which a seller agrees to deliver an asset to a buyer at a predetermined price at some future date as privately negotiated
c. Hedging 3. A contractual agreement for exchanging a steam of payments with opposite and matching needs, to reap the benefit arising due to market discrepancies
d. Forward 4. A contract covering the purchase and sale of physical commodities or financial instruments for future delivery on a future exchange floor
A.
a-4, b-3, c-2, d-1
B.
a-1, b-2, c-3, d-4
C.
a-2, b-1, c-3, d-4
D.
a-4, b-3, c-1, d-2
Answer

Answer: Option D

Solution

Answer: Option D
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