NISM Currency Derivatives - 4
NISM Currency Derivatives - 4
Mock Test with Answer key - Click Here >>
Q 1. A Currency exchange trading member buys 20 lots of USDINR one month futures on day 1 at 65.80 and also sells 4 lots of the same contract on the same day at 65.90 in the proprietary book. The settlement price for the day was 65.80. What would be mark
Zero
-400
800
-600
Q 2. A person has a requirement to buy one unit USD and also to sell one unit of USD in OTC spot market at the same time but in different banks. Both the banks quoted same price as 75.31/75.35. In this transaction, how much currency conversion profit/loss
Profit of 3 paisa
Profit of 7 paisa
Loss of 6 paisa
Loss of 4 paisa
Q 3. An exporter submits export order worth USD 25 million to bank as a proof of exposure to foreign exchange risk. As per the order, he would receive payment after three months. Given this, what best describes the eligibility of the exporter for booking
Maximum of USD 25 million for a maximum maturity of three months
Maximum of USD 25 million for a maximum maturity of one months
Maximum of USD 12.5 million for a maximum maturity of three months
Any amount for a maximum maturity of six months
Q 4. An multinational company has export revenue in JPY and it uses part of it to make import payments in USD and balance is converted in INR. The company is concerned about JPYUSD risk for its import payments. Which of the following best describes compan
USD appreciating against JPY, Short USDINR and long JPYINR for same maturity
USD appreciating against JPY, Short JPYINR and long USDINR for same maturity
USD depreciating against JPY, Short JPYINR and long USDINR for same maturity
USD depreciating against JPY, Short USDINR and long JPYINR for same maturity
Q 5. As per the guidelines issued with respect to permissions for trading in 'PRO ACCOUNT' by the trading member, which of the below is true?
A trading member has to get Exchange’s permission if he wants to enter ‘Pro account’ orders from multiple locations
‘Pro Account’ orders can be entered from multiple location and multiple terminal
‘Pro Account’ orders can be entered from only one location as approved by Clearing Corporation
‘Pro Account’ orders can be entered from a specific location as approved by SEBI
Q 6. The Government see that the INR is depreciating against the USD. Which of the following moves can be one of the solutions to reduce this depreciation ?
Increase imports from US
Decrease FII holding in the Indian Stock Market
Increase FII holding in the Indian Stock Market
Curb inflow of foreign capital into India
Q 7. The tick size for USDINR currency futures contract in India is _______ .
2.5 Rupees
0.25 Rupees
0.025 Rupees
0.0025 Rupees
Q 8. Which of the below option is TRUE with respect to Exchange Traded derivatives ?
Only the contracting parties are safe guarded by the risk management policies and not all the market participants.
Exchange traded derivatives are not regulated
The margining system is different for different set of counter parties
All market participants are safe guarded by the risk management policies
Q 9. A GDP growth rate higher than expected may mean relative __________ of the currency of that country, assuming everything else remaining the same.
strengthening
weakening
No effect
None of the above
Q 10. A significantly better than expected Consumer Price Index from United Kingdom (UK) will result in what type of movement of GBP against other countries ?
GBP depreciating against other currencies
GBP appreciating against other currencies
No significant change
Q 11. A trading member buys 13 lots of EURINR one month futures on day 1 and also sells 6 lots of the same contract on the same day in his proprietary books. What would be his open position at the end of the day in EUR ?
19000
7000
13000
6000
Q 12. Broker Mr. ABC charges a brokerage of Rs 40 per lot of USDINR futures on only one leg of the transaction if its squared off the same day. Broker Mr XYZ charges Rs 25 per lot of USDINR futures on both the legs even if its squared up on the same day. A
Rs 1000 and 1100
Rs 1200 and 1000
Rs 900 and 980
Rs 950 and 820
Q 13. Consider a scenario in which USDINR was quoting as 63.40/63.42 and EURUSD as 1.1450 / 1.1453 in the morning and by the day end USDINR moves to 63.10/63.12 while EURUSD moves to 1.1420/1.1422. What would best describe the movement of currency during t
USD has appreciated against INR and also appreciated against EUR
USD has depreciated against INR and also depreciated against EUR
USD has appreciated against INR and depreciated against EUR
USD has depreciated against INR and appreciated against EUR
Q 14. The minimum net worth requirement for a company to be eligible for applying to become an authorized exchange for currency futures is Rs _______.
Rs 150 crore
Rs 300 crore
Rs 100 crore
Rs 200 crore
Q 15. When you buy an Option, does it means you have a right to sell the underlying asset ?
Yes
No
Depends on whether its a Call or Put option