Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

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Prepare for the Certified Anti-Money Laundering Specialist Certification (CAMS) exam. Study with multiple choice questions, each with hints and explanations. Boost your chances of success!

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What is a primary function of a Commodity Pool?

To buy real estate directly
To trade futures or options contracts
To provide loans to members
To manage public investment funds

The correct answer is: To trade futures or options contracts

A commodity pool primarily serves the purpose of pooling funds from multiple investors to trade in commodity futures or options contracts. This investment structure allows individual investors to participate in the commodities market, which they might not be able to access on their own due to high capital requirements or the complexities involved in trading these instruments. The essence of a commodity pool lies in its pooled resources, which are professionally managed to speculate on the price movements of various commodities. Participants are typically seeking to gain exposure to this market as a means of diversification, hedging against inflation, or achieving capital growth. The other options do not accurately reflect the primary function of a commodity pool. Buying real estate directly, providing loans to members, or managing public investment funds pertain to different investment strategies or financial structures that do not align with the primary objective of commodity pooling, which is focused specifically on futures and options trading.