n NISM Certifications
NSM General NISM
Medium

An international trading company has export revenue in USD and uses part of it to make import payments in USD, converting the balance to INR. What is the company's USDINR risk, and the currency futures strategy may it adopt to mitigate this risk?

Practice question from NISM Series I - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    USD depreciating against INR, Long USDINR

  2. USD depreciating against INR, Short USDINR

    Correct answer

  3. C

    USD appreciating against INR, Long USDINR

  4. D

    USD appreciating against INR, Short USDINR

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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