Verified Content

NISM Demo Questions

Get a glimpse of our premium question bank. Practice these highly-curated demo questions to boost your NISM preparation and identify your weak spots.

Sample Question Bank

For a bank treasury comparing cash bonds, futures, and swaps, focusing on chapter 6 market data, why should a trader examine both price change and open-interest change? Select the most accurate fixed-income derivatives interpretation.

+1-0.25
MCQ
A
The combination helps distinguish fresh positioning from position closure
B
Open interest alone fixes the next settlement price
C
Price change is irrelevant in derivatives
D
The two figures must always move in the same direction
NISM-Series-IVchapter-6market-datadifficulty-2

In an Indian ETIRD compliance and settlement case, focusing on chapter 6 user hierarchy, who is the highest-level user in a trading firm's F&O system hierarchy? Choose the answer that best fits the interest-rate-derivatives exam context.

+1-0.25
MCQ
A
Dealer
B
Authorised Person
C
Corporate Manager
D
Branch Manager
NISM-Series-IVchapter-6user-hierarchydifficulty-1

For a debt portfolio manager concerned about rate movements, focusing on chapter 6 user hierarchy, which function is specifically available to the Corporate Manager? Apply the Series IV fixed-income convention while selecting the correct response.

+1-0.25
MCQ
A
Issuing PAN numbers to clients
B
Defining exposure limits for branches
C
Viewing only the user's own trades
D
Clearing trades through a clearing bank
NISM-Series-IVchapter-6user-hierarchydifficulty-2

In a short-term rate benchmark and MIBOR futures scenario, focusing on chapter 8 scra, which provision in the SCRA definition allows an equity futures contract to be treated as a security? Select the most accurate fixed-income derivatives interpretation.

+1-0.25
MCQ
A
Derivatives are expressly included within securities
B
Every future payment is a government security
C
Only instruments carrying voting rights are securities
D
All private commercial agreements are listed securities
NISM-Series-IVchapter-8scradifficulty-1

In a Series I question focused on currency-market microstructure, focusing on chapter 7 span, a portfolio contains a long call and a short call at different strikes. How should SPAN assess it? Answer as a currency futures or currency options market participant would.

+1-0.25
MCQ
A
As a combined option portfolio across scenarios, not as unrelated positions
B
Margin only the profitable leg
C
Ignore the long call completely
D
Use only the underlying's face value
NISM-Series-Ichapter-7spandifficulty-2

In an interest-rate options scenario involving GOI bond price exposure, focusing on chapter 10 kyc, why is periodic KYC updating required? Select the most accurate fixed-income derivatives interpretation.

+1-0.25
MCQ
A
It replaces transaction monitoring
B
Client identity, address, ownership, and risk circumstances may change
C
Option contracts never expire
D
It recalculates index values
NISM-Series-IVchapter-10kycdifficulty-1

For a debt portfolio manager concerned about rate movements, focusing on chapter 9 hedge accounting, which hedge-accounting models are recognized? Apply the Series IV fixed-income convention while selecting the correct response.

+1-0.25
MCQ
A
FIFO, LIFO, and average cost
B
Fair value hedge, cash flow hedge, and hedge of a net investment in a foreign operation
C
Cash, spot, and forward
D
Call, put, and futures
NISM-Series-IVchapter-9hedge-accountingdifficulty-2

In a Series IV question focused on fixed-income market mechanics, focusing on chapter 9 fair value hedge, what is a fair value hedge? Answer as a GOI bond, T-bill, or MIBOR derivatives participant would.

+1-0.25
MCQ
A
A hedge of exposure to changes in fair value attributable to a specified risk
B
A tax set-off
C
A margin deposit
D
A hedge only of future salary
NISM-Series-IVchapter-9fair-value-hedgedifficulty-2

For a risk manager using listed interest-rate derivatives for rate exposure, focusing on chapter 9 cash flow hedge, what is a cash flow hedge? Use the Indian exchange-traded interest-rate derivatives framework.

+1-0.25
MCQ
A
A hedge of exposure to variability in cash flows attributable to a specified risk
B
A bond auction
C
A hedge of clean price only
D
A default waterfall
NISM-Series-IVchapter-9cash-flow-hedgedifficulty-2

In a short-term rate benchmark and MIBOR futures scenario, focusing on chapter 9 hedge documentation, what is required to apply hedge accounting? Select the most accurate fixed-income derivatives interpretation.

+1-0.25
MCQ
A
Only physical settlement
B
Formal designation, documentation, and effectiveness assessment as applicable
C
No identified risk
D
A guaranteed profit
NISM-Series-IVchapter-9hedge-documentationdifficulty-2

For a clearing and settlement case in interest-rate derivatives focusing on chapter 9 oci, where is the effective portion of a qualifying cash flow hedge generally recognized initially? Choose the answer that best fits the interest-rate-derivatives exam context.

+1-0.25
MCQ
A
Nowhere
B
Share capital
C
Other comprehensive income subject to applicable standards
D
Salary expense
NISM-Series-IVchapter-9ocidifficulty-2

In a Series IV interest-rate derivatives case for a GOI securities portfolio, focusing on chapter 9 ineffectiveness, where is hedge ineffectiveness generally recognized? Apply the Series IV fixed-income convention while selecting the correct response.

+1-0.25
MCQ
A
Client margin
B
Share capital
C
Profit or loss as required by the applicable standard
D
Ignored permanently
NISM-Series-IVchapter-9ineffectivenessdifficulty-2

For a treasury desk hedging duration with bond futures or MIBOR futures, focusing on chapter 9 margin accounting, how is initial margin generally viewed in accounting? Answer as a GOI bond, T-bill, or MIBOR derivatives participant would.

+1-0.25
MCQ
A
Guaranteed income
B
Immediate salary expense
C
A deposit or asset according to its nature, not automatically an expense
D
Share capital
NISM-Series-IVchapter-9margin-accountingdifficulty-2

During a Series IV mock exam case on exchange-traded interest-rate derivatives, focusing on chapter 9 option accounting, how is option premium paid treated at inception conceptually? Use the Indian exchange-traded interest-rate derivatives framework.

+1-0.25
MCQ
A
As an amount relating to the derivative asset, subject to subsequent accounting
B
As margin income
C
As zero
D
As bond face value
NISM-Series-IVchapter-9option-accountingdifficulty-2

For a fixed-income dealer reviewing yield, basis, and margin risk, focusing on chapter 9 disclosure, what should derivative disclosures describe? Select the most accurate fixed-income derivatives interpretation.

+1-0.25
MCQ
A
Only dealer names
B
Risk-management policies, exposures, accounting policies, and relevant fair values
C
Only coupons
D
No information
NISM-Series-IVchapter-9disclosuredifficulty-2

In an interest-rate options scenario involving GOI bond price exposure, focusing on chapter 9 tax classification, how is eligible exchange-traded derivative income commonly classified for tax? Choose the answer that best fits the interest-rate-derivatives exam context.

+1-0.25
MCQ
A
Business income
B
Salary income
C
Agricultural income
D
Lottery income
NISM-Series-IVchapter-9tax-classificationdifficulty-2

For a bank treasury comparing cash bonds, futures, and swaps, focusing on chapter 9 non speculative, why can eligible exchange-traded derivatives be treated as non-speculative business? Apply the Series IV fixed-income convention while selecting the correct response.

+1-0.25
MCQ
A
All derivatives are tax-free
B
They are physically settled
C
They have no profit or loss
D
The Income-tax Act provides an exclusion when prescribed recognized-exchange conditions are met
NISM-Series-IVchapter-9non-speculativedifficulty-2

In an Indian ETIRD compliance and settlement case, focusing on chapter 9 loss setoff, against which income can non-speculative business loss generally not be set off in the same year? Answer as a GOI bond, T-bill, or MIBOR derivatives participant would.

+1-0.25
MCQ
A
Capital gains subject to law
B
Income from other sources subject to law
C
Salary income
D
Eligible business income
NISM-Series-IVchapter-9loss-setoffdifficulty-2

For a debt portfolio manager concerned about rate movements, focusing on chapter 9 loss carry forward, for how long may eligible non-speculative business loss generally be carried forward? Use the Indian exchange-traded interest-rate derivatives framework.

+1-0.25
MCQ
A
Indefinitely without conditions
B
Three years
C
Eight assessment years
D
One year
NISM-Series-IVchapter-9loss-carry-forwarddifficulty-2

In a Series IV question focused on fixed-income market mechanics, focusing on chapter 9 tax filing, what filing condition matters for carrying forward business loss? Select the most accurate fixed-income derivatives interpretation.

+1-0.25
MCQ
A
Late filing always preserves it
B
Only an exchange statement is required
C
The return should be filed within the prescribed due date, subject to law
D
No return is needed
NISM-Series-IVchapter-9tax-filingdifficulty-2

Ready for the full experience?

Unlock hundreds of verified questions, full-length mock tests, and deep performance analytics for NISM.

Start Full Test Series