Practice Set - 3 | Practice Set | NISM Series XVI: Commodity Derivatives Certification Examination

Question 1

If clearing house raises margins abruptly, traders may face:

Question 2

A trader depends entirely on daily MTM gains to meet obligations. Risk is:

Question 3

A trader closes position but margin is still locked temporarily. This reflects:

Question 4

If clearing house resources are insufficient, next consequence is:

Question 5

Which condition increases systemic vulnerability?

Question 6

If default fund is exhausted, next risk is:

Question 7

If clearing house guarantees fail across markets, consequence is:

Question 8

Which factor causes margin calls to cluster together?

Question 9

If clearing house depends heavily on few members, risk is:

Question 10

Which condition leads to underestimation of risk by clearing systems?

Question 11

If market volatility drops suddenly, margin requirement:

Question 12

Which scenario leads to excessive reliance on clearing system?

Question 13

If clearing system misjudges correlation between assets, risk is:

Question 14

If multiple participants depend on the same liquidity source, risk is:

Question 15

A trader uses borrowed funds to meet margin calls. Risk increases due to:

Question 16

Which condition may cause failure of margin models?

Question 17

Which factor makes settlement most complex?

Question 18

Which scenario is hardest to model in risk systems?

Question 19

Which factor most directly impacts margin requirement calculation?

Question 20

If clearing member defaults and recovery is slow, risk is:

Question 21

If settlement is delayed across multiple trades, effect is:

Question 22

A trader incorrectly assumes margin equals maximum loss. This leads to:

Question 23

A trader profits but fails to settle obligations due to bank issues. This is:

Question 24

If variation margin is delayed, clearing house exposure becomes:

Question 25

Which risk arises from inaccurate data in clearing system?

Question 26

Which scenario creates hidden risk in clearing system?

Question 27

A trader faces repeated settlement delays. This indicates:

Question 28

A trader meets margin call but loses again due to volatility. This cycle indicates:

Question 29

A trader meets margin call using borrowed funds repeatedly. This leads to:

Question 30

If margin requirements are too high, the likely market impact is:

Question 31

A trader fails due to delay in transferring margin funds. This is primarily:

Question 32

A trader faces loss exceeding margin due to overnight movement. This is:

Question 33

A clearing member’s margin is exhausted and default fund is partially used. What does this indicate?

Question 34

A trader defaults due to incorrect exposure estimation. This is:

Question 35

Practice Set - 3