Sample Questions
NISM Series 22: Fixed Income Securities Mock Test — 5 random MCQs with answers & explanations
← Back to NISM Series 22: Fixed Income Securities Mock TestThese 5 questions are randomly selected (standard MCQs only, not case-based).
Q1 What is the financial term for the chance that a borrower will fail to make their payments, usually measured using past data?
Explanation:
"Probability of Default" is a mathematical guess, based on history, of how likely it is that a specific borrower or type of bond will stop making payments.
Marks: 1
Q2 Which platform allows investors to view live market prices and control their own orders for government bonds?
Explanation:
NDS-OM-Web is an online system that gives bondholders direct access to the professional trading platform, making it easier for them to see prices and make trades.
Marks: 1
Q3 In a "repo" transaction, is it true that the second part of the deal always involves the exact same value as the first part?
Explanation:
False. The second part (repurchase) is for a slightly higher amount. The difference between the original sale price and the repurchase price is the interest (repo rate) earned.
Marks: 1
Q4 What type of bonds do NBFCs use to raise money, with Mutual Funds often being the main buyers?
Explanation:
"Inverse bonds" (specifically inverse floaters) have interest rates that go UP when market rates go DOWN, which can be an attractive strategy for some fund managers.
Marks: 1
Q5 Who provides the anonymous "TREPS" platform where institutions can trade with each other without knowing the other party?
Explanation:
Clearcorp, a subsidiary of CCIL, runs this high-tech platform that allows banks and funds to borrow and lend money safely and privately.
Marks: 1
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