NISM Series IV (Interest Rate Derivatives) Practice Questions - NISM-Series-IV Interest Rate Derivatives Certification Examination Exam - NISM Series IV (Interest Rate Derivatives) Practice Questions - NISM-Series-IV Interest Rate Derivatives Certification Examination Exam

Question 1

Which of the following entities is the largest issuer of debt securities in the Indian fixed income market?

Private corporate entities Central and State Governments Public Sector Undertakings (PSUs) Municipal Corporations

Correct Answer:

Central and State Governments

Question 2

What is the primary difference between Indian Treasury Bills (T-Bills) and Dated Government Securities?

T-Bills are issued by corporate firms whereas Dated G-Secs are issued by the RBI. T-Bills have a maturity of more than one year, while Dated G-Secs have a maturity of less than one year. T-Bills are zero-coupon debt instruments issued at a discount, while Dated G-Secs pay semi-annual coupons. T-Bills carry higher default risk compared to Dated sovereign bonds.

Correct Answer:

T-Bills are zero-coupon debt instruments issued at a discount, while Dated G-Secs pay semi-annual coupons.

Question 3

According to the Expectations Hypothesis of the yield curve, an upward-sloping yield curve indicates that market participants expect future short-term interest rates to:

Remain unchanged indefinitely Rise in the future Decrease gradually Become highly volatile

Correct Answer:

Rise in the future

Question 4

A government bond with a face value of Rs. 100 pays a semi-annual coupon of 7.50% per annum. If the bond is currently trading at a clean price of Rs. 102.50, the current yield of the bond is closest to:

7.50% 7.32% 3.66% 7.69%

Correct Answer:

7.32%

Question 5

Which of the following actions by the Reserve Bank of India (RBI) is most likely to cause bond yields in India to fall?

Conducting open market sales of government securities Conducting open market purchases of government securities Increasing the Repo rate under the Liquidity Adjustment Facility (LAF) Increasing the Cash Reserve Ratio (CRR) requirements for commercial banks

Correct Answer:

Conducting open market purchases of government securities

Question 1

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Prepare with the NISM Series IV (Interest Rate Derivatives) Practice Questions - NISM-Series-IV Interest Rate Derivatives Certification Examination Exam practice quiz. This question bank includes 100 questions covering interest, futures, rate, bond, and g-sec. 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 IV (Interest Rate Derivatives) Practice Questions - NISM-Series-IV Interest Rate Derivatives Certification Examination Exam

This practice set contains 100 questions from the matching question bank and focuses on interest, futures, rate, bond, and g-sec. 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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NISM Series IV (Interest Rate Derivatives) Practice Questions - NISM-Series-IV Interest Rate Derivatives Certification Examination Exam

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