NISM Series 1 Currency Derivatives Question Bank

NISM Series 1 Currency Derivatives Question Bank for exam preparation

1. Simply Paisa .com Question Bank for NISM Currency Derivatives Also available Video lessons, Question Bank and Mock Test for NISM exam preparation for Currency Derivatives exam Visit http://www.simplypaisa.com/academy/ for more

2. Foreign exchange spot trading is buying one currency with a different currency for _______ delivery A. Forward B. Future C. Immediate D. None of the Above E. I am not attempting this question ANSWER : C http://www.simplypaisa.com/academy/

3. Long Hedger will be A. Short in the foreign currency B. Long in the foreign currency C. Both of the Above D. None of the Above E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

4. A recognized stock exchange having nationwide terminals or a new exchange recognized by SEBI may set up currency futures segment after obtaining SEBI’s approval A. TRUE B. FALSE C. Neither true nor false D. Insufficient information E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

5. Value of OP = Underlying position + Hedging position; and in case of a Perfect hedge, the Value of the OP is insensitive to exchange rate (FX) changes . A. TRUE B. FALSE C. Neither true nor false D. Insufficient information E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

6. Long hedge means underlying position of short in the foreign Currency and Hedging position of long in currency futures A. TRUE B. FALSE C. Neither true nor false D. Insufficient information E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

7. The proper size of the Hedging position in Basic Approach is A. Equal hedge B. Optimal hedge C. Partial Hedge D. None of the Above E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

8. The exposure of the banks, on their own account, in the currency futures market shall form part of their _________________ limits . A. Net Open Position (NOP) B. Aggregate Gap (AG) C. Both of the Above D. None of the Above E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

9. If an order to buy/sell is limited by fixed price it is called A. Limit Order B. Limited Discretionary Order C. Stop loss Order D. Best Rate Order E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

10. In which of the following types of orders the client does not give any price or time limit for execution of order ? A. Limit Order B. Limited Discretionary Order C. Stop loss Order D. Market Rate Order E. I am not attempting this question ANSWER : D http://www.simplypaisa.com/academy/

11. The standard settlement convention for Foreign Exchange Spot trades is A. T+2 days B. T+3 days C. T+1 days D. T+4 days E. I am not attempting this question ANSWER : A http://www.simplypaisa.com/academy/

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