This document contains a sample of 10 multiple choice questions from the NISM Series I: Currency Derivatives Certification Examination. It provides the questions without answers and directs the reader to another site to find the answers. The questions cover topics like eligible participants in the currency futures market, calculation of profits and losses on futures positions, the impact of interest rate changes on currency values, hedging currency risk, currency conversion effects on investment returns, contract sizes, accounting guidance on futures contracts, maximum maturity periods for currency contracts, and characteristics of zero coupon securities.

1. NISM Series I: Currency Derivatives
Certification Examination Model
Question Paper
If you are looking for NISM Series I: Currency Derivatives
Certification Examination Model Question Paper then
you are at the right place. Just move to the next page to
grab demo questions of NISM Series I: Currency
Derivatives Certification Examination.

2. Q.1. _________ are not allowed to trade in
currency futures markets?
(A) FII's
(B) HNI's
(C) Corporates not having exposure to foreign currencies
(D) Individuals

3. Q.2. A trader sells 10 lots of one month USDINR future at 56.
At expiry the settlement price was announced at 56.50.
What is his Profit or Loss?
(A) Profit of 500
(B) Profit of 5000
(C) Loss of 500
(D) Loss of 5000

4. Q.3. All 11 AM the RBI announced the credit policy and a
deduction in interest rates. Generally such a step will lead to
__________ of rupee.
(A) No effect
(B) Strengthening
(C) Weakening

5. Q.4. An importer has to make payments in USD while most of
its revenue is in INR. The importer is concerned about USDINR
risk. Which of the following strategy should it consider to
mitigate this risk?
(A) USD appreciating against INR - Long USDINR futures
(B) USD appreciating against INR - Short USDINR futures
(C) USD depreciating against INR - Long USDINR futures
(D) USD depreciating against INR - Short USDINR futures

6. Q.5. Mr Mehta invested Rs 1.00,000 in UK Stock Markets
when the GBPINR rate was 75. After one year his investment
appreciated by 20% in GBP terms. He sold of his investments
and repatriated the money to India at the then existing rate of
80. What is his real return in INR?
(A) He has made a Profit of 20%
(B) He has made a Loss of 20%
(C) He has made a profit of 28%
(D) He has made a Loss of 28%

7. Q.6. The contract size for USDINR futures contract is
__________.
(A) USD 100
(B) INR 100
(C) USD 1000
(D) INR 1000

8. Q.7. The Institute of Chartered Accountants of India (ICAI)
has issued guidance notes on accounting of index futures
contracts from the view point of parties who enter into
such futures contracts as buyers or sellers - True or False?
(A) True
(B) False

9. Q.8. The maximum maturity of a JPYINR contract
traded on a recognized currency exchange in India is
_______ months.
(A) 1
(B) 3
(C) 6
(D) 12

10. Q.9. You execute a future currency trade - Buy
EURINR and Sell USDINR of same amount.
Which of the below options is your view -?
(A) INR appreciating against USD
(B) INR appreciating against EUR
(C) EUR appreciating against USD
(D) EUR depreciating against USD

11. Q.10. Zero coupon securities are securities that do not
pay a regular interest, but accumulate the interest, and
pay it along with the principal when the security
matures- True or False?
(A) False
(B) True

12. Just visit http://pass4sure.in to know the answers
of these questions. At Pass4sure, you can test
yourself by giving NISM Currency Derivatives
Mock Test online. To score high in NISM Series
I: Currency Derivatives Certification
Examination, just pay Rs. 499 only to grab
updated 400-500 questions and answers with
explanations.