Practice Set - 2 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

Which scenario reflects liquidity risk in settlement?

Question 2

A clearing member defaults during high volatility. Which mechanism primarily absorbs the loss first?

Question 3

A trader hedges but clearing fails. Risk type is:

Question 4

A trader defaults due to lack of funds despite profitable position later. This highlights:

Question 5

A trader maintains excessive margin. Efficiency impact is:

Question 6

A trader miscalculates exposure leading to margin shortfall. This is:

Question 7

If clearing fails across exchanges, risk becomes:

Question 8

If clearing house increases margin suddenly, it indicates:

Question 9

A trader relies fully on margin leverage without reserves. Risk outcome is:

Question 10

Which factor primarily determines margin requirement?

Question 11

If exposure margin is underestimated, risk becomes:

Question 12

If clearing system underestimates volatility, margin requirement becomes:

Question 13

If clearing house risk models fail, the consequence is:

Question 14

If settlement cycles shorten, risk exposure:

Question 15

A trader defaults intentionally due to insufficient margin. This reflects:

Question 16

A trader faces repeated margin calls due to volatility. This indicates:

Question 17

If default fund is insufficient, next risk is:

Question 18

A trader avoids margin call due to delayed reporting. This primarily indicates:

Question 19

Which condition creates maximum clearing stress?

Question 20

A clearing house faces simultaneous defaults. Its first line of defense is:

Question 21

Which scenario reflects systemic risk in clearing system?

Question 22

Which scenario increases settlement risk significantly?

Question 23

A trader uses high leverage and small margin. Risk exposure becomes:

Question 24

Which component absorbs losses after margin exhaustion?

Question 25

If variation margin is not collected daily, the major risk is:

Question 26

Which situation leads to maximum uncertainty in settlement?

Question 27

A trader has sufficient initial margin but fails due to extreme price movement. This shows:

Question 28

If a trader’s losses exceed margin and default fund is used, this is:

Question 29

Which mechanism prevents excessive position buildup?

Question 30

A trader experiences loss due to overnight price gap exceeding margin. This is:

Question 31

If multiple traders fail simultaneously, clearing house faces:

Question 32

If mark-to-market is skipped temporarily, risk becomes:

Question 33

Which risk remains even after clearing house guarantee?

Question 34

A trader closes position but settlement fails due to system issue. This is:

Question 35

Practice Set - 2