Marks
 Q.No
 Question  Actual Answer  Selected Answer obtaine
.
d
 Which subsidies can be given without being challenged
 1.  Disaster payments  Disaster payments  1
in WTO:

 2.  Select the right combination for India's ceiling bindings  None of the above  None of the above  1

 An Indian exporter wants to export rice to Spain market,

 Production  Minimum Support
 3. which subsidy extended in Spain should be of concern to  0
delimiting Support price
him?

 4.  Select the odd one out in terms of MSP  Flowers  Flowers  1

 As procurement managers for your firm; short listing the

 5. sourcing point as the production cluster may backfire due  APMC  Any of the above  0
to:
 Which one of these is the price risk model for the
 6.  All of the above  All of the above  1
farmers

 7.  GrAMs are the part of which scheme?  PPPS  PPPS  1

 Total number of HS codes for agriculture at six digit

 8.  696  696  1
level approximately is:

 9.  Select the odd one out  APMC  APMC  1

 Satellite Growers are the prominent part of which type  Nucleus Estate  Nucleus Estate
 10.  1
of contract farming model model
 ITC plans to expand its spice exports beyond Africa;
however is not sure on the time period of its export
readiness. Priotise your selection (best to worst) as
export destination based on the current duty structures
across various markets:

  Bound Rate Applied Rate

 China-Philippines-  China-Philippines-
 11.  1
USA-Cambodia USA-Cambodia
a) USA 50 30

b) Philippines 40 40

c) Cambodia 60 25

d) China 40 25

 In order to offset the announcement of maize as special

product by Indian government; which option under the  Shift sourcing from  Shift sourcing from
 12.  1
ones listed below will NOT offset this disadvantage to USA to Canada USA to Canada
ConAgra foods planning to import its maize from the US:
 What is common between Dirty tariffication and high
 13.  Base Year  Base Year  1
subsidy issue

 14.  Select the odd one out in case of India's TRQ  Onion  Onion  1

 The price at which the procured and buffer stock food

 15.  Issue Price  Issue Price  1
grains are provided through the PDS
 ConAgra foods is looking into possibilities of importing
 Announcement of
maize from the USA as raw material towards
 16.  All of the above maize subsidies by  0
manufacturing its ACT II popcorn. Which announcements
USA
would be a concern for the company?
  Band rate of tariff reduction is not applicable for which
 17.  Forestry &Fishery  Forestry &Fishery  1
of these commodities?
 Reliance farm fresh had been into exports of fresh fruits
to the EU utilizing MDA scheme towards participation in
 18. the trade fair. The company now wants to enter from  Japan  Japan  1
exports of fresh fruits to processed fruit juice. Availing
MAI scheme for which market is advisable?
 As per the new Farm Bill, stock limits on farming
 50 percent increase  50 percent increase
produce to be based on price rise in the market. Identify
 19. in retail price of in retail price of  1
the wrong statement in this context of applying the stock
horticultural produce horticultural produce
limits:
 As an Indian exporter of cotton, you are looking for right
market for exports for 2027. Which of the foreign market
will be preferable?

Market AMS Deminimus

 20. a) Australia 23456 10987  a)  a)  1

b) USA 23456 45327

c) Canada 23456 23456

d) None of the above

 Under which scenario an agro trading firms can source

 21.  Bhavantar  Bhavantar  1
below MSP:
 Satnam overseas deals into big time exports of rice. The
company now wanted to shift from supplying rice to Thai
 22.  Tariff escalation  Tariff escalation  1
market to NTL stating milled rice with 10% milling. What
does the company needs to look into?
 As an Indian exporter of sugar, you are looking for right
market for exports for Dec 2021. Which of the foreign
market will be preferable?

Market AMS Deminimus

 23. a) Australia 23006 10987  b)  b)  1

b) USA 22006 45327

c) Canada 23456 23456

d) Can't say

 24.  India is not part of:  G-10  G-10  1

 As an Indian exporter of shrimps, you are looking for

right market for exports for 2027. Which of the foreign
market will be preferable?

Market AMS Deminimus

 25. a) Australia 22006 10987  d)  d)  1

b) USA 23456 45327

c) Canada 23456 23456

d) None of the above

 26.  What is the right flow for Agri Price policy in India?  APMC-FCI-TPDS  APMC-FCI-TPDS  1

 Which of these companies are using wrong HS code for  Bikaner namkeen :  Bikaner namkeen :
 27.  1
their exports? HS 11 HS 11
 In the situation of facing import surge of various agro
commodities; EPCs requests Ministry of commerce for
 28. applying special product status to protect their members  MPEDA  MPEDA  1
against the import surge. Which of the following cannot
make such request:
 KRBL is looking for exporting its basmati rice to any of
the below listed markets. Based on the trade defense
mechanism applied for rice imports by these importing
destinations; which market should the company choose:

Importing Special
TRQ SSG
 29. destination Product  Not relevant  Mexico  0
Australia Yes Yes Yes

Mexico Yes Yes No

Ethiopia Yes No No

 Towards your efforts of business development as export

 30. expansion; for which of the commodities; availing MAI  All of the above  Fertilizer  0
wouldn't help:

 Marks
Q.No
 Question  Actual Answer  Selected Answer obtaine
.
d

 1.  When the basis is positive, which of the following is true:  Markets are inverted  Markets are inverted  1

 A soybean oil miller sells a put option on soybean with a

strike of Rs.5000 per quintal, with a premium of Rs. 40
 2. per quintal. What will be the buying price for the oil miller  Rs. 4960 per quintal  Rs. 4960 per quintal  1
when the market price of soybean is Rs. 4500 per
quintal?

 3.  In a falling market, speculators can profit by going  short in futures  short in futures  1

 All commodities are  All commodities are

 4.  Identify the incorrect statement: traded in derivative traded in derivative  1
markets markets
 Option sellers must  Option sellers must
deposit an initial deposit an initial
margin and are margin and are
 5.  Pick the "correct" statement:  1
marked-to-market as marked-to-market as
a part of daily a part of daily
settlement settlement
 A call option with a higher strike will command a
 6. premium that is _____ a call option with same expiry but  Lower than  Lower than  1
lower strike
 When the price risk of groundnuts is hedged on an
 7. exchange using soybean contracts, then this is an  Proxy hedge  Proxy hedge  1
example of
 increase the value of  increase the value of
 8.  Any increase in the market price of the underlying will  1
its call option its call option
 9.  A snack manufacturer enters a swap contract whereby  The snack  The snack  1
the price of potatoes is fixed at Rs. 600/quintal for a manufacturer will manufacturer will
series of purchases of potatoes over the next 6 months. receive Rs.50/quintal receive Rs.50/quintal
 When the company pays a market price of Rs.
from its counterparty from its counterparty
650/quintal to buy potatoes, which of the following would
in the swap in the swap
be true?
 buying a futures  buying a futures
contract of the contract of the
 10.  A buying hedge can be best constructed by relevant underlying relevant underlying  1
to hedge a short to hedge a short
physical position physical position
 It is the difference in
 11.  Which of the following is "correct" about Spread price between two  All of the above  0
futures contracts
 When the spot prices fall, but the futures prices remain
 12. higher and do not fall to the level of spot prices, what is  Unfavourable  Unfavourable  1
the impact of this on a selling hedge?
 A wheat seller buys a put with a strike of 2200/qtl. for a
premium of Rs. 50/qtl. and sells a call with a strike of Rs.
 13.  Rs. 2290/qtl  Rs. 2190/qtl  0
2300/qtl. for a premium of Rs. 40. What is the selling
price of wheat for this seller when th
 In a selling (short) hedge, what are the payoffs to the  Profit in futures;  Profit in futures;
 14.  1
hedger when the spot and futures prices fall? Loss in spot Loss in spot
 In a market with many sellers and buyers and a  The seller with the  The seller with the
competitive price discovery process, which seller and lowest ask price and lowest ask price and
 15.  1
which buyer will be the first in line for the execution of the buyer with the the buyer with the
their orders? highest bid price highest bid price

 16.  When basis weakens, it is favourable for  Long hedgers only  Short hedgers only  0

 Awheat miller company, that buys wheat regularly, has

used wheat futures to hedge the risk of rising wheat
 Loss in spot  Loss in spot
prices. When due to a poor harvest of wheat in the
 17. markets, but no profit markets, but no profit  1
harvest month, wheat prices rise in the spot markets, but
in futures markets in futures markets
the wheat futures prices remain unchanged, what is the
outcome of the hedge for the wheat miller company?
 Limited profits and  Limited profits and
 18.  The payoffs on a short options position are  1
unlimited losses unlimited losses
 It is a standardized,  It is a standardized,
exchange-traded and exchange-traded and
 19.  Which of the following typifies a futures contract?  1
cleared forward cleared forward
contract contract
 A speculator  A speculator
 Which of the following statements is "incorrect" for a transfers the risk in transfers the risk in
 20.  1
speculator? futures trades to futures trades to
arbitrageurs arbitrageurs
 A sugar trader has stocked 10000 quintals of sugar in his
 Sell Futures on  Sell Futures on
 21. warehouses. What kind of a hedge can the sugar trader  1
Sugar Sugar
go for to be protected against his price risk exposure?
 From 4th to 8th November 2021, the basis for a
 22.  Narrowing of basis  Narrowing of basis  1
commodity has moved from -200 to -150. This is:
 It ensures that the  It ensures that the
 23.  How is arbitrage helpful? law of one price law of one price  1
holds across markets holds across markets
 If a confectionery company wants to buy 5 sugar
contracts for December 2021 expiry at Rs.3600/quintal,
 24. or less, what type of an order must be placed with the  Limit Order  Limit Order  1
broker to ensure that the order is filled at the desired
price or better?
 What kind of risk are the agencies that procure
agricultural crops on MSP on behalf of the state  Falling prices; Short  Falling prices; Short
 25.  1
governments exposed to, and what type of a hedge can hedge hedge
they construct?
 26.  In the commodity futures markets, the process of  the Clearing House  the Clearing House  1
"Novation" means that of an Exchange of an Exchange
interposes between interposes between
 the buyers and the buyers and
sellers of futures sellers of futures
contracts contracts
 A mustard seed oil miller sells a put option on mustard
seed with a strike of Rs.8000 per quintal, with a premium
 27. of Rs. 60 per quintal. What will be the buying price for  Rs. 8940 per quintal  Rs. 8940 per quintal  1
the oil miller when the market price of mustard seed is
Rs. 9000 per quintal?
 It does not give the  It does not give the
commodity seller commodity seller
protection against protection against
 Selling a call option can be risky for the commodity seller
 28. falling prices, or any falling prices, or any  1
because
opportunity to sell at opportunity to sell at
higher prices if prices higher prices if prices
rise rise
 For a hedger who buys a call option on an underlying
with a strike if Rs. 1,500/ qtl. for a premium of Rs. 50,
and sells a put option on the same underlying with a
 29.  Rs. 1400  Rs. 1400  1
strike price of Rs. 1,400/qtl. at a premium of Rs. 50 (both
options have the same expiry), the minimum buying price
of the underlying will be
 Which of the following objectives can be met by trading
 30.  All of the Above  All of the Above  1
in futures contracts on exchanges?