NISM-Series-VIII SET 1

Which of these is a derivative ?

If yield-to-maturity rises, then___

The Conversion Factor in physical settlement of bond futures will be _

A Trading member of the Exchange can do which of the following ?

The Constituent Subsidiary General Ledger (CSGL) Account can be opened by____

When the original period of borrowing / lending is less than one year, it is known as____

If the Treasury bill futures contract price changes by 500 ticks, the change in value of one futures contract is___

One Basis Point is equal to _

In India, the minimum and multiple amounts of issue for T bills is____

The Clearing Account is used exclusively for___

Of the below mentioned four values, which one can be bought or sold for Govt. Bond Futures ?

The underlying for ‘ Bond Derivatives ‘ should be___

The underlying for Interest rate futures is___

Which of the following is a correct measure of the realized return for a coupon bond ?

is/are secured money market instruments) .

Fixed-income securities market consists of which of the following markets ?

Which of the following underlying has the largest size of outstanding derivatives globally ?

Calendar spread consists of buying and selling futures on

Current yield is an unsatisfactory measure of return because

Which risk does one face when the changes in prices of spot Treasury Bill and Treasury Bill futures

The effect of reinvestment risk on a bond is___

The contract amount (market lot) for Govt. Bond futures is _

Yield to maturity – YTM assumes that term structure of zero rates is___

Which of the following is a “risk-free” security ?

The maturity of the underlying for Treasury Bill futures in India is___

What is Term Structure ?

When securities are delivered short, the auction is conducted on___

Amongst the following options, which one is true with respect to ‘ CLEARING ACCOUNTS’ ?

The permissible maturity for underlying of Treasury Bill futures in India are___

Some months back the 3 month rate was 8% and the 1 year rate was 8.8%. Currently the 3 month rate is 8.4% and the 1 year rate is 8.9% . What is the shift of this term structure called ?

The short-term interest rate is predominantly determined by inflation outlook – State True or False ?

Which of the following is true about the Conversion Factor ?

Delivery margin is collected on the _

Assume that the regulator has stipulated a minimum margin of Rs 200, the clearing corporation can change it to____

Value-at-risk (VaR) is a measure of maximum likely price change over a___

The effect of price risk on a bond is___

In India, exchange traded derivatives were first started in which of the following ?

The derivatives segment has the Exchange and the Clearing Corporation. These are_____

____is an derivative.

_____have to compulsorily hold government securities in demat form.

The deposit required by the exchange in which interest rate derivatives are traded will be

As per the accounting standards for derivatives in India, which of the below given options is TRUE ?

Other things remaining constant, the Modified Duration will____ if the coupon payment frequency of bond increases.

When one trades in SWAP derivatives, he buys and sell the___

If you buy a zero-coupon instrument issued by a sovereign government and hold it until maturity, which of the following risks will you face ?

____are hybrid assets.

Assume that the price of a Govt. bond future is Rs 113, what will the market value of one contract?

The Govt Bond futures price changes by 100 ticks. Therefore the change in value of one futures contract will be

In India the Exchange traded derivatives were first started in___

What is the underlying for 6-Year cash settled Interest Rate Futures contracts ?

The VaR (Value at Risk) will be higher for___

___is/are traded in Exchange Markets.

The Notice of Intent to Deliver is given by___

The settlement system for Treasury Bill futures is___

____are quarterly months for the purpose of expiry of interest rate derivatives.

A trader expects the interest rates to go down in the near future. To profit from this view he should____today.

One of the Standard tenor in money market is___

What is the major economic role of the underlying markets – Primary Markets ?

If the base price of a security for a trading day is Rs 200 and the price range is 1%, the opening price for the trading day will be___

A person is interested in speculating or hedging the long term interest rates. Which option should he choose of the following ?

What is TRUE about a Gilt Account ?

In____bonds, the investor has the right to demand prepayment on specified dates before maturity.

___are created from the securitization process.

Mutual Funds have to obtain prior permission of SEBI to short sell Treasury Bills and Government Bonds – State True or False ?

Which of the following category of market participants can openly short-sell bond futures?

As per current regulations, the expiry months for Govt. Bond futures are _

Equated monthly installments (EMls) is an example of___

The regulator for the secondary market of government securities is .

For the entire sale obligation, the seller can deliver different deliverable bonds but in multiples of contract amount – State True or False ?

In a calendar spread the trader does two trades with the following features____

For hedging or speculation, which of the following features of futures contract will be relevant?

Which of the following instruments has no reinvestment risk?

The Money market securities have a period of more than one year – State True or False?

Which of the following is the settlement day of the bond futures contract?

The concept of accrued interest applies to which of the following ?

The Clearing Corporation protects itself from the defaults of buyers and sellers by____

Will a zero coupon bond issued by a Corporate have a Reinvestment risk ?

The underlying for Interest rate derivative should be the Interest rate on money – State True or False ?

Treasury Bills are issued by the Govt. of India at minimum and in multiples of Rs 100000 – State True or False ?

When the interest rate rises with the tenor of a bond, the shape of term structure is called____

When there is a failure to notify the Intent to Deliver, the auction is conducted on the__

Which of the following months) is / are included in the three serial quarterly contracts for expiry of interest rate derivatives ?

Counterparty credit risk is substantially reduced by

Basis Risk arises mainly due to

Index options were the first derivative instruments traded on Indian exchanges – State True or False?

Amongst the below given options, who requires a prior permission from SEBI to short sell Govt. Bond futures ?

SWAP involves exchange of returns from the underlying and not the exchange of cash for an underlying asset – State True or False ?

Which among the following options is /are eligible to open a Constituent Subsidiary General Ledger (CSGL) Account ?

Among the two – Outright future trade and Calendar Spread, which will demand a lower margin?

What will be the shape of term structure if the long term rate is 10% and the short term rate is also 10% ?

Which of the following statement is true about Limit Order?

If you expect the interest rate will go up in future, today you should____

What is the settlement method for 91-day bill futures?

The short-term interest rate is determined by___

If both the long-term rate and short term rate is 10%, the shape of term structure of rates is__

Conversion Factor will remain constant for a Delivery Month regardless of changes in yields over time – State True or False ?

Which of the following statements is true for Netting?

For a 13-Year cash settled Interest Rate Futures contracts, the underlying is _

Debt market forms a part of Equity Markets – State True or False ?

Which of the following has higher credit risk?