100+ Free NISM Series I (Currency Derivatives) Practice Questions
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Key Facts: NISM Series I (Currency Derivatives) Exam
100 questions
NISM Series I (Currency Derivatives) has 100 multiple-choice questions
NISM - CD assessment structure
2 hours
Candidates must complete the NISM Series I exam in 120 minutes
NISM - CD assessment structure
60% pass
The passing score for NISM Series I is 60 out of 100 marks
NISM - CD FAQ
25% negative marking
Each wrong answer deducts 25% of the marks assigned to the question
NISM - CD assessment structure
Rs. 1,500
The NISM Series I examination fee is Rupees one thousand five hundred (plus GST)
NISM - CD FAQ
3 years
The NISM CD certificate is valid for 3 years from the date of the exam
NISM - CD certification page
10 chapters
The Currency Derivatives syllabus is divided into ten weighted chapters
NISM - CD curriculum
100
Free original practice questions available here
OpenExamPrep
NISM-Series-I (Currency Derivatives) is a SEBI-mandated certification from the National Institute of Securities Markets for professionals dealing in currency futures and options. The exam consists of 100 multiple-choice questions to be completed in 2 hours, with a passing score of 60% and negative marking of 25% for wrong answers. The fee is Rs. 1,500 and the certificate is valid for 3 years. The 2022 NISM syllabus weights Exchange Traded Currency Futures (20%) and Exchange Traded Currency Options (20%) as the largest units, followed by Introduction to Currency Markets (10%), Strategies (10%), Trading Mechanism (10%), and Clearing, Settlement and Risk Management (10%). This 100-question practice bank provides coverage of all units with detailed explanations for every option.
Sample NISM Series I (Currency Derivatives) Practice Questions
Try these sample questions to test your NISM Series I (Currency Derivatives) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1An 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?
2Which of the following transactions is recorded in the Capital Account of India's Balance of Payments (BOP)?
3An Indian textile exporter has an upcoming USD receivable in three months. What is the primary role of this exporter in the currency derivatives market?
4In 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?
5If 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?
6A treasury desk needs to calculate the EUR/INR cross-rate. The current spot quotes are EUR/USD = 1.0920 and USD/INR = 83.50. What is the calculated EUR/INR exchange rate?
7Which of the following macroeconomic developments is most likely to lead to an appreciation of the Indian Rupee against the US Dollar?
8If the spot USD/INR rate is 83.00, the annualized domestic interest rate in India is 7.00% p.a., and the annualized foreign interest rate in the US is 5.00% p.a. What is the theoretical 3-month forward exchange rate using simple compounding (using a 360-day year)?
9In the context of the currency market, what is the main objective of a speculator?
10Which of the following currency pairs is NOT traded as an Exchange-Traded Currency Derivative (ETCD) contract on recognized stock exchanges in India?
About the NISM Series I (Currency Derivatives) Exam
NISM-Series-I: Currency Derivatives Certification Examination is a SEBI-mandated certification administered by the National Institute of Securities Markets. It is the requisite standard for associated persons of registered stock-brokers and trading members who deal with clients, execute trades, or handle operations in currency derivatives. The syllabus covers the basics of currency markets, foreign exchange derivatives, futures contract design and pricing, trading strategies (hedging, speculation, arbitrage), trading platform rules, clearing, settlement, risk management (SPAN margins and ELM), currency options contracts, accounting entries, taxation aspects, SEBI and RBI regulations, and codes of conduct. The exam has 100 one-mark questions, a 60% pass score, 25% negative marking, and the certificate remains valid for three years.
Assessment
100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from ten chapters covering currency spot and derivatives markets, futures strategies, options, trading mechanisms, clearing, settlement, risk management, accounting, taxation, and regulations.
Time Limit
2 hours (120 minutes).
Passing Score
60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.
Exam Fee
Rs. 1,500 (plus payment gateway charges and applicable GST). (National Institute of Securities Markets (NISM), established by SEBI.)
NISM Series I (Currency Derivatives) Exam Content Outline
Introduction to Currency Markets
Exchange rate arithmetic, direct and indirect quotes, balance of payments, and determinants of exchange rates.
Foreign Exchange Derivatives
Definition of derivatives, over-the-counter vs exchange-traded derivatives, forwards, options, futures, and swaps.
Exchange Traded Currency Futures
Contract specifications, payoff profiles, currency futures pricing, cost of carry model, interest rate parity, and basis.
Exchange Traded Currency Options
Call and put options contracts, European style options, intrinsic and time value, option pricing, options Greeks, and basic option strategies.
Strategies using Exchange Traded Currency Derivatives
Hedging strategies for exporters and importers, calendar spread trading, cash-futures arbitrage, speculation, and basis risk.
Trading Mechanism in ETCD
Exchange trading platform, order matching logic, order types, membership structure, and contract specifications.
Clearing, Settlement and Risk Management
Central counterparty clearing, daily mark-to-market settlement, SPAN margins, extreme loss margins, and risk management limits.
Regulatory Framework for ETCD
Roles of SEBI and RBI, Foreign Exchange Management Act (FEMA), and underlying exposure limits for domestic and foreign investors.
Accounting and Taxation of ETCD
Accounting entries for initial margins and MTM profits/losses, and tax treatment of derivatives as non-speculative business income.
Codes of Conduct and Investor Protection Measures
Broker code of conduct, contract note issuance rules, client money segregation, and investor grievances redressal via SCORES and Arbitration.
How to Pass the NISM Series I (Currency Derivatives) Exam
What You Need to Know
- Passing score: 60% (60 out of 100 marks). Negative marking of 25% of the marks assigned to a question applies for each wrong answer.
- Assessment: 100 multiple-choice questions of 1 mark each, totalling 100 marks, drawn from ten chapters covering currency spot and derivatives markets, futures strategies, options, trading mechanisms, clearing, settlement, risk management, accounting, taxation, and regulations.
- Time limit: 2 hours (120 minutes).
- Exam fee: Rs. 1,500 (plus payment gateway charges and applicable GST).
Keys to Passing
- Complete 500+ practice questions
- Score 80%+ consistently before scheduling
- Focus on highest-weighted sections
- Use our AI tutor for tough concepts
NISM Series I (Currency Derivatives) Study Tips from Top Performers
Frequently Asked Questions
How many questions are on the NISM Series I (Currency Derivatives) exam and what is the duration?
The exam consists of 100 multiple-choice questions of 1 mark each, totalling 100 marks. The total time duration allocated is 2 hours (120 minutes).
What is the passing score for NISM Series I?
The passing score is 60%, which means you must score at least 60 out of 100 marks to clear the examination.
Does NISM Series I have negative marking?
Yes. The exam has negative marking of 25% of the marks assigned to a question, which translates to a deduction of 0.25 marks for each wrong answer. Unanswered questions do not carry negative marks.
What is the fee and certificate validity for NISM Series I?
The exam fee is Rs. 1,500 plus applicable GST. The certificate is valid for 3 years from the date of passing the examination.
Who is required to pass the NISM Series I exam?
SEBI mandates this certification for associated persons of a registered stock-broker or trading member of a recognized stock exchange who deal with clients, execute trades, or handle operations in currency derivatives.
Are these official NISM practice questions?
No. These are original practice questions created by OpenExamPrep, modeled on the official NISM-Series-I (Currency Derivatives) syllabus. NISM provides its own workbook to registered candidates separately on its website.