Practice Set - 1 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

The clearing corporation acts as:

Question 2

Which type of settlement involves cash difference only?

Question 3

Which type of settlement happens at contract expiry?

Question 4

Which risk is reduced by diversification?

Question 5

Daily MTM loss must be paid by:

Question 6

Which risk arises due to price fluctuations?

Question 7

Which risk arises if counterparty defaults?

Question 8

Which process ensures daily settlement of gains/losses?

Question 9

Final settlement price is based on:

Question 10

Settlement risk is minimized by:

Question 11

Which margin ensures participation in market?

Question 12

Which fund is used to handle defaults?

Question 13

Which system ensures no counterparty risk?

Question 14

Clearing corporation reduces risk through:

Question 15

Which event triggers final settlement?

Question 16

Which margin is returned after position closure?

Question 17

What is the primary function of clearing?

Question 18

If MTM gain occurs, it is:

Question 19

Variation margin is another name for:

Question 20

Which margin is collected at the start of position?

Question 21

Which entity is responsible for clearing and settlement in derivatives market?

Question 22

Which entity collects margins?

Question 23

Which margin is adjusted daily?

Question 24

Which margin covers potential future losses?

Question 25

Mark-to-market settlement is done:

Question 26

Credit risk refers to:

Question 27

Operational risk arises due to:

Question 28

Liquidity risk refers to:

Question 29

Which system ensures transparency in settlement?

Question 30

Practice Set - 1