Practice Set - 3 | Practice Set | NISM Series VIII: Equity Derivatives Certification Examination

Question 1

Which situation shows misuse of power by broker?

Question 2

A broker recommends high-risk derivatives to a conservative investor citing past returns. This is:

Question 3

Which situation reflects hidden conflict of interest?

Question 4

Which scenario indicates breach of fiduciary responsibility?

Question 5

If regulatory penalties increase but violations persist, it indicates:

Question 6

If a client gives limited authorization and broker exceeds it, the action is:

Question 7

Which behavior indicates systemic weakness in investor protection?

Question 8

Which action undermines investor confidence most?

Question 9

A broker selectively executes profitable trades first and delays loss-making ones. This is:

Question 10

If investor complaints rise despite compliance reports, it suggests:

Question 11

If a broker executes trades at unfavorable prices despite better market availability, it is:

Question 12

Which scenario reflects manipulation of investor perception?

Question 13

A broker offsets client losses with gains from another client account. This indicates:

Question 14

A broker promises guaranteed returns in derivatives trading. This is:

Question 15

A broker encourages frequent switching of strategies without rationale. This is:

Question 16

Which practice ensures long-term investor protection?

Question 17

A broker routes client orders through related entities without disclosure. This is:

Question 18

A broker delays transferring client funds after settlement. This results in:

Question 19

If grievance redressal takes excessive time repeatedly, it indicates:

Question 20

Practice Set - 3