n NISM Certifications
NSM General NISM
Medium

Rising Star Ltd exports 70% more than it imports in USD, and import payments are made seven days after export receivables. What is the primary currency risk faced?

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

Options

  1. A

    Absolutely zero currency risk

  2. INR appreciation against USD

    Correct answer

  3. C

    INR depreciating against USD

  4. D

    Risk of reducing forward premia

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

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