Question 1
An Indian importer has to pay USD 100,000 to a US supplier. The exchange rate is quoted by a bank in Mumbai as USD/INR = 83.50. Under this direct quotation, which of the following statements is correct?
Correct Answer:
INR is the quote currency and USD is the base currency
Question 2
Which of the following transactions is recorded in the Capital Account of India's Balance of Payments (BOP)?
Correct Answer:
Foreign Direct Investment (FDI) by a French car manufacturer in a plant in Tamil Nadu
Question 3
An Indian textile exporter has an upcoming USD receivable in three months. What is the primary role of this exporter in the currency derivatives market?
Correct Answer:
To hedge against the risk of the US Dollar depreciating
Question 4
In the foreign exchange spot market, if a trade is executed on Monday, October 12th, and is settled on Wednesday, October 14th (assuming no holidays), what is the settlement type?
Correct Answer:
Spot settlement
Question 5
If inflation in India rises significantly higher than inflation in the United States, how is the exchange rate of USD/INR expected to behave, assuming all other factors remain constant?
Correct Answer:
The USD/INR rate will increase, indicating the Indian Rupee has depreciated
Question 1
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Prepare with the NISM Series I (Currency Derivatives) Practice Questions - NISM-Series-I Currency Derivatives Certification Examination Exam practice quiz. This question bank includes 100 questions covering futures, contract, rate, currency, and indian. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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NISM Series I (Currency Derivatives) Practice Questions - NISM-Series-I Currency Derivatives Certification Examination Exam

This practice set contains 100 questions from the matching question bank and focuses on futures, contract, rate, currency, and indian. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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