CDG Industry Ethics & Market Knowledge

Question 1

What is a fundamental ethical principle in the diamond industry?

Accepted Answer

Honesty and transparency

Answer

Maximizing profits at any cost

Answer

Secrecy

Answer

Ignoring client needs

Question 2

What does the Kimberley Process aim to prevent?

Accepted Answer

Conflict diamond trade

Answer

Counterfeit diamonds

Answer

Illegal mining only.

Answer

All gemstone trade.

Question 3

Why is market knowledge important for diamond graders?

Accepted Answer

To provide accurate valuations

Answer

To sell diamonds cheaply.

Answer

To compete unfairly.

Answer

To ignore quality.

Question 4

What is a conflict diamond?

Accepted Answer

Diamonds used to finance conflict

Answer

Diamonds with defects.

Answer

Diamonds from certain countries only.

Answer

Synthetic diamonds.

Question 5

What is the purpose of a diamond grading report?

Accepted Answer

To provide objective quality information

Answer

To appraise value only.

Answer

To certify origin.

Answer

To verify ownership.

Question 6

Why must diamond graders remain impartial?

Accepted Answer

To maintain grading credibility

Answer

To favor high-value clients.

Answer

To speed up grading.

Answer

To reduce workload.

Question 7

What does 'market liquidity' mean?

Accepted Answer

Ease of buying and selling

Answer

The asset's value.

Answer

The asset's rarity.

Answer

Price stability.

Question 8

What is the significance of disclosure in diamond sales?

Accepted Answer

It protects buyer rights

Answer

It is optional.

Answer

It helps sellers avoid taxes.

Answer

It speeds sales.

Question 9

Why is staying updated on industry trends important?

Accepted Answer

To provide current advice

Answer

To follow fads.

Answer

To ignore regulations.

Answer

To reduce work.