n NISM Certifications
VII NISM Series VII
Medium

The impact cost is the percentage price movement caused by an order size of Rs.1 lakh from the average of the best bid and offer price. True or False?

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

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Impact cost measures the price movement caused by a standard order size, calculated separately for buy and sell sides in each order book snapshot.

Test yourself for real

Take a full NISM Series VII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.