Introduction to Currency Markets
16 questions. Each answer is explained.
Question 1 of 10Practice · Series I — Currency Derivatives
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Learn these topics
More units in NISM Series I
- Foreign Exchange Derivatives13
- Exchange Traded Currency Futures15
- Exchange Traded Currency Options20
- Strategies Using Exchange Traded Currency Derivatives19
- Trading Mechanism in Exchange Traded Currency Derivatives13
- Clearing, Settlement and Risk Management in Exchange Traded Currency Derivatives18
- Regulatory Framework for Exchange Traded Currency Derivatives12
- Accounting and Taxation11
- Codes of Conduct and Investor Protection Measures13
Exam format
| Questions | 100 · 1 mark each |
|---|---|
| Duration | 120 min · 2 hours |
| Pass mark | 60% · 60 of 100 marks |
| Negative marking | 25% · 0.25 marks off per wrong answer |
| Certificate validity | 3 years · from the date of the examination |
| Marks for this unit | Not published by NISM |
NISM Series I Currency Derivatives
Exam rules read on NISM's site on 3 October 2026. Check the current rules on NISM's site (opens in a new tab)
What these answers assume, and when it was last checked
Each question uses the rules listed below. We last checked them on 5 September 2026. A Budget or SEBI circular can change a rate, lot size or expiry day. If a rule changes before your exam, treat the linked questions as out of date and check NISM's current workbook.
- NSE uses Tuesday expiry and BSE uses Thursday expiry. This applies from 1 September 2025.
- The January 2026 index lot sizes are NIFTY 65, BANKNIFTY 30, FINNIFTY 60, MIDCPNIFTY 120 and NIFTYNXT50 25.
- The October 2024 SEBI framework sets a minimum index contract value of Rs 15–20 lakh. Each exchange may list one weekly benchmark index.
- Option buyers pay the premium upfront from 1 February 2025. A short index option has an extra 2% Extreme Loss Margin on expiry day from 20 November 2024.
- Equity short-term capital gains are taxed at 20%. Long-term gains are taxed at 12.5% above Rs 1.25 lakh. Both rates apply from 23 July 2024.
- F&O income is non-speculative business income in ITR-3. NSE equity derivatives trade from 9:15 a.m. to 3:40 p.m.
- The final ten-minute session began on 3 August 2026. It aligns with the cash market Closing Auction Session.
- Most Securities Transaction Tax questions test the base and who pays. On an option sale, it is the premium and the seller pays. On a futures sale, it is the traded value and the seller pays.
- On exercise, Securities Transaction Tax uses intrinsic value: settlement price minus strike price. The buyer pays it.
- Two questions test the current rate. From 1 April 2026, option sales carry 0.15% on the premium and futures sales carry 0.05% on traded price. The earlier rates were 0.10% and 0.02% from 1 October 2024.
- This section uses the T+1 rolling settlement cycle. Obligations are fixed on T+1. A short delivery goes to buy-in auction on T+1 and settles on T+2.
- The trade-for-trade surveillance segment uses direct close-out. Funds pay in by 10:30 a.m. and pay out on or after 1:30 p.m. on settlement day.
- Securities pay in to the settlement pool by 10:30 a.m. They pay out directly to the client’s demat account by 3:30 p.m.
- The 3:30 p.m. deadline replaced 1:30 p.m. under SEBI’s 10 October 2024 circular. Direct client credit was required by SEBI’s 5 June 2024 circular.
- The optional T+0 cycle trades until 1:30 p.m. Obligations are fixed by 2:30 p.m. on the trade day. An early pay-in shortage is closed out directly.
- Cash-market Value at Risk margin is six times exponentially weighted moving-average volatility. It has a 9% floor for Group I, a 21.5% floor for Group II, and a fixed 50% or 75% level for Group III.
- Extreme Loss Margin is 3.5% for a share and 2% for a broad-market-index exchange traded fund. Mark-to-market margin is collected before the next day’s trading. The trade-for-trade segment has 100% upfront margin.
- Close-out uses the higher of the highest price from trade day to auction day and 20% above the auction day’s official close.
- A funds shortage costs 0.07% a day. The trading facility is withdrawn at a shortage of Rs 5 lakh or more.
- SCORES allows 21 calendar days, then two 15-day review levels. Online Dispute Resolution moves from conciliation to arbitration after the market participant and SCORES steps.
- At NSE, the Investor Protection Fund limit is Rs 35 lakh per investor for each defaulting or expelled member. This applies to claims arising after 13 August 2024.
- A Basic Services Demat Account has no annual maintenance charge up to Rs 4 lakh of holdings. It costs up to Rs 100 above that, until the Rs 10 lakh eligibility ceiling. These slabs apply from 1 September 2024.
- The rupee pairs are USD-INR, EUR-INR, GBP-INR and JPY-INR. The cross-currency pairs are EUR-USD, GBP-USD and USD-JPY.
- Each contract covers 1,000 units of the foreign currency, except JPY-INR. JPY-INR covers 100,000 yen and is quoted in rupees per 100 yen.
- The tick is 0.25 paise, or Rs 0.0025. It equals Rs 2.50 a contract.
- Rupee pairs trade from 9:00 a.m. to 5:00 p.m. A monthly contract stops trading at 12:30 p.m. two working days before the expiry month’s last business day.
- Final settlement is in cash at the FBIL reference rate on expiry day. FBIL, Financial Benchmarks India, has published this rate in place of the Reserve Bank since 2018. Premium-style European options are quoted in rupees. The buyer pays the premium in cash on T+1.
- Daily settlement is on T+1 and final settlement is on T+2.
- NSE Clearing circular 026/2020 sets SPAN margin plus Extreme Loss Margin. The futures margin is 0.50% for USD-INR, 0.15% for EUR-INR, 0.25% for GBP-INR and 0.35% for JPY-INR. A short option has 0.75%. These figures apply from 1 June 2020.
- A USD-INR client may hold 6% of total open interest or USD 20 million, whichever is higher. A trading member may hold 15% or USD 100 million.
- A resident user has one USD 100 million equivalent limit across all rupee pairs and exchanges. No document is needed below that limit, but a valid underlying contracted exposure must still exist. This clarification applies from 3 May 2024.
- The currency segment has no Securities Transaction Tax.
The exam figures (questions, time, pass mark, negative marking and certificate validity) come from NISM's own pages, read on 3 October 2026. Timed practice uses the same figures. Study with the official workbook as well.
The written-out answers on this page are hidden while your timed set runs.
All 16 questions on Introduction to Currency Markets, with answers
Q1In the currency pair USD-INR, the US dollar and the Indian rupee are respectively the:
Option A. Quotation currency and base currency
Why it is wrong: This reverses the two roles. It would describe INR-USD instead.
Option B. Base currency and quotation currency — Correct answer
Option C. Base currency and base currency
Why it is wrong: A quotation needs one currency to be priced and another to express its price. Both currencies cannot be the base in this single pair.
Option D. Quotation currency and quotation currency
Why it is wrong: Both currencies cannot be the quotation currency in this single pair. USD is the currency being priced.
Answer: B. USD is the base and INR provides the price of one unit of that base. Read USD-INR as the number of Indian rupees required for one US dollar. USD is the first currency and is the base. INR is the second currency and is the quotation currency. These roles come from the written pair, not from the trader’s nationality. Remember: Identify the first currency as the base and the second as the quotation currency.
Hint, shown before you answer in practice mode: Common mistake: Assuming the Indian rupee must be the base because the question concerns India.
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Q2USD-INR rises from 87.80 to 88.60. Which statement correctly describes the rupee’s movement against the dollar?
Option A. The rupee depreciates because one dollar now costs fewer rupees.
Why it is wrong: The depreciation conclusion is right, but the reason is wrong. One dollar costs more rupees, not fewer.
Option B. The rupee appreciates because one dollar now costs more rupees.
Why it is wrong: A higher rupee cost of a dollar means rupee depreciation, not appreciation.
Option C. The rupee depreciates because one dollar now costs more rupees. — Correct answer
Option D. The rupee appreciates because one dollar now costs fewer rupees.
Why it is wrong: Fewer rupees per dollar would indicate appreciation, but the quote has moved in the opposite direction.
Answer: C. Both the direction of the rupee’s movement and the explanation match the higher quote. The cost of one USD increases from ₹87.80 to ₹88.60, an increase of ₹0.80. More rupees must now be exchanged for the same USD 1. The rupee therefore loses value relative to the dollar. Remember: When USD-INR rises, INR weakens against USD.
Hint, shown before you answer in practice mode: Common mistake: Treating a rise in the displayed USD-INR number as a rise in the rupee’s value.
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Q3India’s current account deficit widens because foreign-currency payments increase. With other factors unchanged and no offsetting inflows, which immediate pressure is most likely?
Option A. Rupee depreciation and a higher USD-INR quote — Correct answer
Option B. Rupee appreciation and a higher USD-INR quote
Why it is wrong: It both predicts the wrong rupee direction and pairs appreciation with a higher INR-per-USD quote.
Option C. Rupee appreciation and a lower USD-INR quote
Why it is wrong: This describes rupee strengthening, the opposite of the pressure created by the stated increase in foreign-currency demand.
Option D. Rupee depreciation and a lower USD-INR quote
Why it is wrong: The depreciation direction is right, but depreciation against USD corresponds to a higher, not lower, USD-INR quote.
Answer: A. Rupee depreciation is consistent with the stated demand pressure and with a higher USD-INR quote. Higher foreign-currency payments create additional demand for foreign currency relative to rupees. The question holds other influences unchanged and excludes offsetting inflows. Under those assumptions, the extra demand puts downward pressure on INR. A weaker INR means more rupees per dollar, so USD-INR faces upward pressure. Actual exchange-rate outcomes can differ when capital flows, expectations or intervention change. Remember: Analyse the currency demand channel and the quotation direction separately.
Hint, shown before you answer in practice mode: Common mistake: Treating a current account deficit as a guarantee of depreciation in every real-world situation.
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Q4USD-INR is 88.4000 and EUR-USD is 1.0850. Ignoring bid-ask spreads, the implied EUR-INR rate is:
Option A. 81.4747
Why it is wrong: This comes from 88.4000 ÷ 1.0850. Division reverses the required conversion.
Option B. 89.4850
Why it is wrong: This adds the two quotes. Exchange rates with different currency units cannot be added to obtain this cross rate.
Option C. 7.5140
Why it is wrong: This uses only 0.0850 × 88.4000 and omits the whole USD in EUR-USD of 1.0850.
Option D. 95.9140 — Correct answer
Answer: D. Multiplying the two quotations gives the rupee cost of one euro. EUR-USD of 1.0850 means EUR 1 equals USD 1.0850. USD-INR of 88.4000 means each USD equals ₹88.4000. EUR-INR = (USD per EUR) × (INR per USD). The USD units cancel. 1.0850 × 88.4000 = ₹95.9140 per EUR. Remember: Write the currency units beside the rates and cancel the shared currency.
Hint, shown before you answer in practice mode: Common mistake: Dividing simply because the question asks for a cross rate, without checking units.
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Q5For a normal interbank USD-INR spot transaction, the value date is ordinarily:
Option A. The trade date itself
Why it is wrong: Same-day value is a cash or value-today transaction rather than an ordinary spot value date.
Option B. The second business day after the trade date — Correct answer
Option C. The first business day after the trade date
Why it is wrong: Next-business-day value is a tom transaction rather than the normal spot convention.
Option D. The second calendar day after the trade date
Why it is wrong: Calendar days include weekends and holidays. The spot convention uses valid business days.
Answer: B. This expresses the normal T+2 business-day convention. Under the standard USD-INR spot convention, settlement is ordinarily T+2 business days. T is the trade date. Business days, not calendar days, are counted. Relevant settlement holidays can move the value date. For example, a Monday trade ordinarily settles on Wednesday when both intervening days are valid settlement business days. Remember: Distinguish trade date from value date and count business days for normal spot settlement.
Hint, shown before you answer in practice mode: Common mistake: Applying an equity-market settlement cycle to an interbank foreign-exchange transaction.
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Q6A dealer buys USD at ₹88.20 and sells USD at ₹88.24. A customer buys USD 25,000 and immediately sells the same amount back at these unchanged rates for the same value date. What is the customer’s result before other charges?
Option A. ₹500 loss
Why it is wrong: ₹500 uses only half the quoted spread, as though one side were transacted at the midpoint.
Option B. ₹1,000 loss — Correct answer
Option C. ₹1,000 gain
Why it is wrong: This reverses the customer’s receipt and payment. The spread is a cost to this customer, not a gain.
Option D. No gain or loss
Why it is wrong: An unchanged quote does not make its buying and selling rates equal. The spread still creates a loss.
Answer: B. The customer buys at the higher price and sells at the lower one, losing ₹1,000. The customer pays 25,000 × ₹88.24 = ₹22,06,000 to buy the dollars. The resale receives 25,000 × ₹88.20 = ₹22,05,000. Net cash flow = ₹22,05,000 − ₹22,06,000 = −₹1,000. Equivalently, the ₹0.04 spread multiplied by USD 25,000 is a ₹1,000 cost. Remember: A round trip can cost money even when the displayed two-way quote does not move.
Hint, shown before you answer in practice mode: Common mistake: Using the midpoint for both trades or confusing the dealer’s side with the customer’s side.
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Q7A dealer buys USD at ₹80.00 and sells USD at ₹80.20. What are its equivalent INR-USD bid and ask, respectively, rounded to six decimal places?
Option A. 0.012500 and 0.012469
Why it is wrong: This takes reciprocals without switching sides, leaving the inverse bid above the inverse ask.
Option B. 0.012469 and 0.012500 — Correct answer
Option C. 0.012484 and 0.012484
Why it is wrong: Both numbers approximate the reciprocal of the midpoint, 80.10. A midpoint is not the dealer’s two-way quote.
Option D. 80.00 and 80.20
Why it is wrong: These are still INR-per-USD prices. Neither the units nor the numerical values have been inverted.
Answer: B. The inverse bid is the reciprocal of the original ask, and the inverse ask is the reciprocal of the original bid. The original ask of ₹80.20 per USD means that the dealer gives USD 1 for INR 80.20. Its bid for INR 1 is therefore 1 ÷ 80.20 = USD 0.0124688279…, rounded to 0.012469. At the original bid, the dealer pays INR 80.00 for USD 1. Selling INR 1 therefore requires USD 1 ÷ 80.00 = 0.012500. The inverse quote is in USD per INR. Its bid remains below its ask, as a two-way dealing quote should. Remember: When reversing a currency pair, inverse bid = 1/original ask and inverse ask = 1/original bid.
Hint, shown before you answer in practice mode: Common mistake: Inverting each number in place without swapping the bid and ask.
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Q8In a hypothetical economy, the exchange rate responds to market demand and supply. The central bank regularly intervenes to limit volatility but does not defend a fixed parity or band. Which arrangement best fits this description?
Option A. A fixed peg to one foreign currency
Why it is wrong: A fixed single-currency peg requires defending a specified target, which the scenario excludes.
Option B. A fixed peg to a foreign-currency basket
Why it is wrong: A basket peg still involves a defended target against the basket. No such target is stated.
Option C. A freely floating rate without intervention
Why it is wrong: This expressly excludes intervention, whereas the stated authority regularly intervenes to limit volatility.
Option D. A managed floating exchange rate — Correct answer
Answer: D. Market determination with regular intervention and no fixed target is consistent with managed floating. Market demand and supply still influence the rate. Regular intervention does not by itself turn that rate into a fixed peg. The absence of a defended parity or band, combined with active management of volatility, identifies a managed float. The question does not classify any country’s current regime. Remember: Look for a defended exchange-rate target, not merely the presence of central-bank intervention.
Hint, shown before you answer in practice mode: Common mistake: Treating every intervention as evidence of a fixed exchange rate.
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Q9A hypothetical CPI is 120 in a given month and 126 in the same month of the following year, using the same index series. What is the year-on-year inflation rate?
Option A. 5.00% — Correct answer
Option B. 6.00%
Why it is wrong: This labels the six-index-point increase as a percentage without dividing by 120.
Option C. 4.76%
Why it is wrong: This uses the current index, 126, as the denominator. The required comparison uses the year-earlier level.
Option D. 26.00%
Why it is wrong: This compares 126 with the reference level of 100 rather than with the specified year-earlier level of 120.
Answer: A. The six-point rise is 5% of the starting level of 120. Use inflation = (current CPI − year-earlier CPI) ÷ year-earlier CPI × 100. The rise is 126 − 120 = 6 index points. Dividing by the earlier level gives 6 ÷ 120 × 100 = 5.00%. Index points and percentage changes are different units. Remember: For year-on-year inflation, divide the index change by the comparable index from twelve months earlier.
Hint, shown before you answer in practice mode: Common mistake: Confusing an index-point increase with a percentage increase.
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Q10A dealer needs a direct quotation of Japanese yen for one euro. Which currency pair should the dealer select?
Option A. USD-JPY
Why it is wrong: This gives yen for a US dollar, not for a euro.
Option B. EUR-CHF
Why it is wrong: This gives Swiss francs for a euro. Its second currency is not the yen.
Option C. EUR-JPY — Correct answer
Option D. GBP-JPY
Why it is wrong: This gives yen for a British pound. Its first currency is not the euro.
Answer: C. EUR identifies the euro and JPY the yen. The pair directly states yen for one euro. The requested currency being priced is one euro, identified by EUR. The amount paid is in Japanese yen, identified by JPY. EUR-JPY therefore supplies the direct quotation requested. Remember: Match both currencies and their order before choosing a quotation.
Hint, shown before you answer in practice mode: Common mistake: Selecting a pair merely because it contains one of the required currencies.
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Q11A dealer quotes EUR-USD at 1.1050–1.1070 and USD-INR at 88.10–88.14, with bid first and ask second. At these quotes, what INR amount buys EUR 1 through USD, rounded to four decimals? Ignore charges.
Option A. ₹97.5710 — Correct answer
Option B. ₹97.3505
Why it is wrong: This multiplies both bids, 1.1050 × 88.10. Those are not the prices for buying EUR and USD from the dealer.
Option C. ₹97.3947
Why it is wrong: This uses the EUR-USD bid with the USD-INR ask. The customer needs to buy, not sell, EUR.
Option D. ₹97.5267
Why it is wrong: This uses the EUR-USD ask with the USD-INR bid. The customer must buy the required USD at the ask.
Answer: A. The buyer pays the ask on both purchases. 1.1070 × 88.14 = 97.57098, which rounds to 97.5710. Buying EUR 1 costs USD 1.1070 at the EUR-USD ask. Buying that USD amount with INR costs ₹88.14 per USD at the USD-INR ask. Required INR = 1.1070 USD/EUR × 88.14 INR/USD = 97.57098 INR/EUR. USD cancels from the units. Rounded to four decimals, the cost is ₹97.5710 for EUR 1. A bid-ask spread cannot be avoided by selecting the cheaper side of a quote. Remember: Trace what you buy at each leg. Here both legs require the dealer’s ask.
Hint, shown before you answer in practice mode: Common mistake: Multiplying a bid and an ask without checking the direction of the two currency exchanges.
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Q12Which arrangement best describes the original Bretton Woods exchange-rate system?
Option A. Independent floating currencies, with the dollar also free to float against gold
Why it is wrong: This describes a floating arrangement rather than the original system of official parities.
Option B. Permanently unchangeable dollar parities for every member, with a dollar-gold link
Why it is wrong: The dollar and gold connection is right, but parities could be adjusted under the system’s conditions.
Option C. Member currency parities fixed directly to gold, with no central dollar link
Why it is wrong: This omits the system’s central dollar link and confuses it with a direct gold-parity arrangement.
Option D. Dollar-linked currency parities that could be adjusted, with a dollar-gold link — Correct answer
Answer: D. The system used fixed but adjustable parities centred on the dollar, which was linked to gold. Member currencies had official parities in relation to the dollar, and the dollar had an official link to gold. Parities were not ordinary freely floating prices. However, the framework allowed changes in specified circumstances, so fixed does not mean permanently unchangeable. Remember: Remember Bretton Woods as dollar-centred and fixed but adjustable.
Hint, shown before you answer in practice mode: Common mistake: Confusing fixed-but-adjustable parities with either free floating or an irreversible currency peg.
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Q13USD-INR rises from 88.00 to 92.40. Measured as the percentage fall in the USD value of one rupee, how much has INR depreciated? Round to two decimals.
Option A. 5.00%
Why it is wrong: This is (92.40 − 88) ÷ 88 × 100, the rise in the INR price of USD, not the requested fall in the USD value of INR.
Option B. 5.26%
Why it is wrong: This incorrectly converts the 5% quote increase as 5 ÷ 95 × 100, using 95 rather than the new quote index of 105.
Option C. 4.76% — Correct answer
Option D. 4.40%
Why it is wrong: ₹4.40 is the absolute increase in the INR-per-USD quotation, not a percentage depreciation.
Answer: C. This answer measures the fall in the reciprocal quote relative to its original USD-per-INR value. The USD value of ₹1 changes from 1 ÷ 88 to 1 ÷ 92.40. Percentage depreciation = [1 − (1 ÷ 92.40) ÷ (1 ÷ 88)] × 100 = (1 − 88 ÷ 92.40) × 100. This equals 4.76190476…%, or 4.76%. The 5% rise in the INR-per-USD quote uses a different denominator. Remember: Invert the quote before measuring the percentage change in the other currency.
Hint, shown before you answer in practice mode: Common mistake: Assuming a 5% rise in one quotation must mean an exactly 5% fall in its reciprocal.
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Q14For this question, a spot trade settles on the second joint business day after trade date. The trade is on Monday. Both currency centres are open on Tuesday, Thursday and Friday, but one is closed on Wednesday. What is the value date?
Option A. Thursday — Correct answer
Option B. Tuesday
Why it is wrong: Tuesday is only the first eligible day.
Option C. Wednesday
Why it is wrong: Wednesday is two calendar days after Monday but is not an eligible joint business day.
Option D. Friday
Why it is wrong: Friday is the third eligible day. Counting Thursday only as day 1 would incorrectly skip Tuesday.
Answer: A. Thursday is the second day after the trade on which both currency centres are open. Monday is the trade date and is not counted as a day after that date. Tuesday is joint business day 1. Wednesday is excluded because both centres are not open. Thursday is joint business day 2 and is therefore the value date. Remember: Apply the stated business-day calendar before assigning the settlement date.
Hint, shown before you answer in practice mode: Common mistake: Reading T+2 as two calendar days or counting the trade date as day 1.
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Q15Which activity group is covered by the US Federal Reserve’s Industrial Production index?
Option A. All goods and services included in gross domestic product
Why it is wrong: GDP has a broader production scope, including services outside the industrial sectors listed here.
Option B. Manufacturing, mining, and electric and gas utilities — Correct answer
Option C. Retail purchases made by households across all sectors
Why it is wrong: Retail purchases measure spending at a different stage. They are not the defined industrial-output coverage.
Option D. Changes in the market prices of industrial companies
Why it is wrong: Equity prices value traded ownership claims. They do not measure the physical output covered by this index.
Answer: B. These are the activity groups identified in the Federal Reserve’s description of the index. The Industrial Production index measures real output in manufacturing, mining, and electric and gas utilities. It does not represent every component of GDP, household retail spending or stock-market performance. A currency analyst must not substitute one measure for another. Remember: Check what an economic indicator measures before drawing an inference from it.
Hint, shown before you answer in practice mode: Common mistake: Interpreting an industrial-output release as a complete GDP report or an equity-price index.
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Q16A dealer quotes EUR-USD at 1.10–1.12 and GBP-USD at 1.25–1.28, with bid first. A customer sells EUR 10,000 and converts the USD proceeds into GBP. How many pounds are received? Ignore charges.
Option A. GBP 8,800.00
Why it is wrong: This divides by the GBP-USD bid of 1.25. The customer is buying GBP and must use its ask.
Option B. GBP 8,750.00
Why it is wrong: This uses the EUR-USD ask of 1.12 before dividing by 1.28, although the customer sells EUR.
Option C. GBP 8,960.00
Why it is wrong: This uses the wrong side of both quotes: 10,000 × 1.12 ÷ 1.25.
Option D. GBP 8,593.75 — Correct answer
Answer: D. The EUR sale earns USD at 1.10 per EUR, and those dollars buy pounds at USD 1.28 per GBP. Selling EUR uses the dealer’s EUR-USD bid. USD received = 10,000 × 1.10 = USD 11,000. The customer then buys GBP at the GBP-USD ask of USD 1.28 per GBP. GBP received = 11,000 ÷ 1.28 = GBP 8,593.75. The synthetic EUR-GBP bid is therefore 1.10 ÷ 1.28 = 0.859375 GBP per EUR. Remember: Trace each conversion separately. Selling EUR and buying GBP uses the EUR bid divided by the GBP ask.
Hint, shown before you answer in practice mode: Common mistake: Multiplying cross rates automatically, or choosing both bids without checking which currency is being purchased.
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Introduction to Currency Markets: common questions
How many practice questions are there on Introduction to Currency Markets?
16 questions, all written out on this page with the correct answer and why each other option is wrong. This unit is one of the 10 practice topics for NISM Series I, which has 150 questions in total.
Are these real NISM Series I questions on Introduction to Currency Markets?
No. LearnNifty wrote every question from NISM's public syllabus. NISM does not publish its question bank, so nobody can offer you the real paper. Use these questions to check that an idea has gone in. Use the official NISM workbook to see what is examined.
Does negative marking apply to NISM Series I?
Yes. NISM takes off 25% of a question's marks for a wrong answer. On a 1-mark question that is 0.25 marks off. A blank question earns nothing and loses nothing, so a wrong guess costs marks on this paper. Timed practice here uses the same rule.
Are these practice questions kept up to date?
Each question is written against the rules printed on this page, last checked on 5 September 2026. A Budget or a SEBI circular can change a rate, a lot size or an expiry day. If one of those rules changes before your exam, treat the questions that use it as out of date. Then check NISM's current workbook.
Foreign Exchange Derivatives
13 questions on Foreign Exchange Derivatives. Its quiz opens on that unit.
Open Foreign Exchange Derivatives