Practice Set - 1 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

If trader closes position before expiry, settlement is:

Question 2

Settlement refers to:

Question 3

If trader fails to meet margin call:

Question 4

If participant defaults repeatedly, exchange may:

Question 5

Risk management includes position limits to:

Question 6

Which type of settlement involves physical commodity?

Question 7

Which risk is reduced by margin system?

Question 8

Clearing house eliminates counterparty risk.

Question 9

Daily settlement in futures is done through:

Question 10

Variation margin is:

Question 11

If clearing house fails, major risk is:

Question 12

Clearing corporation ensures:

Question 13

If market becomes highly volatile, margin requirements:

Question 14

Risk management system ensures:

Question 15

Cash settlement means:

Question 16

A trader maintains excess margin. Risk becomes:

Question 17

Which scenario increases default risk?

Question 18

Clearing house acts as:

Question 19

If margin falls below maintenance level:

Question 20

Which mechanism ensures daily risk control?

Question 21

If trader relies only on margin buffer without risk management, outcome is:

Question 22

Which scenario is most complex in settlement?

Question 23

Which margin is collected upfront?

Question 24

Clearing in commodity markets refers to:

Question 25

Initial margin is collected to:

Question 26

Exposure margin is collected to:

Question 27

Clearing members are responsible for:

Question 28

SPAN margin is based on:

Question 29

Default by a participant leads to:

Question 30

If settlement fails due to technical issue, risk is:

Question 31

If price moves sharply overnight, risk is:

Question 32

Maintenance margin is:

Question 33

Mark-to-market losses must be paid:

Question 34

Settlement risk arises due to:

Question 35

Practice Set - 1