20 questions weighted across all 3 modules of the syllabus. Answer, get the explanation immediately, and see your score at the end.
For review after you've attempted the quiz above — or as a quick reference. Back to the interactive quiz.
1. A mutual fund's NAV is calculated as:
NAV = Net Assets ÷ Outstanding Units, recalculated daily via mark-to-market.
2. Entry loads on mutual fund units are currently:
Entry loads are banned entirely — the sale price always equals the NAV.
3. An EUIN identifies:
EUIN identifies an individual employee of an institutional distributor, who operates under the institution's own ARN rather than a separate one.
4. Equity-oriented fund LTCG (holding period over 12 months) is taxed at:
LTCG on equity-oriented funds is 12.5%, with the first Rs. 1.25 lakh of gains per year exempt.
5. Since when must mutual fund schemes benchmark to the Total Return Index (TRI)?
Schemes have been required to benchmark to TRI (not PRI) since February 1, 2018.
6. A derivative's value is:
A derivative's value derives from (depends on) an underlying asset, rather than existing independently.
7. A trader using derivatives purely to reduce an existing risk exposure is a:
A hedger uses derivatives to reduce existing risk; a speculator takes on new directional risk hoping to profit.
8. A free-float market capitalisation index weights constituents by:
Free-float weighting uses only the shares actually available for public trading, excluding promoter/locked-in holdings — the method most major Indian indices now use.
9. A futures contract, compared to a forward, is:
Futures are standardised, exchange-traded contracts with daily mark-to-market margining; forwards are customised, bilateral OTC agreements.
10. On the expiry date, futures and cash (spot) prices are expected to:
As expiry approaches, the basis (difference between futures and spot) narrows toward zero — futures and cash prices converge.
11. Delta measures:
Delta measures how much an option's premium changes for a one-unit change in the underlying asset's price.
12. Theta measures an option's sensitivity to:
Theta captures time decay — how an option's premium erodes as expiry approaches, all else equal.
13. Put-call parity describes the relationship between:
Put-call parity ties a call option, a put option, and the underlying asset's price together for the same strike and expiry; violations create arbitrage opportunities.
14. The term structure of interest rates refers to:
The term structure of interest rates is the yield curve — yields across different maturities for similar-credit-quality instruments.
15. Accrued interest on a bond refers to:
Accrued interest is interest that has built up since the last coupon payment, which the buyer owes the seller when a bond trades mid-period.
16. Exchange-traded Interest Rate Futures (IRF) on GOI securities use a lot size equal to notional bonds of face value:
One lot of IRF on a GOI security equals notional bonds of face value Rs. 2 lakh (2,000 bonds), per the exchange contract specifications.
17. The tick size for IRF contracts is:
The tick size (minimum price movement) for IRF contracts is Rs. 0.0025.
18. IRF contracts on GOI securities are settled:
Exchange-traded IRF on GOI securities are cash-settled — the difference between contract and final settlement price is paid in cash.
19. OTC interest rate derivatives, compared to exchange-traded ones, are:
OTC derivatives are customised and negotiated bilaterally between two parties, without the standardisation or central clearing of exchange-traded contracts.
20. What is the correct assessment structure of the NISM-Series-V-D exam?
V-D has 150 questions worth 1 mark each (150 marks total), a 3-hour duration, 60% pass mark, and 10% negative marking per wrong answer.