n NISM Certifications
V-A NISM Series V-A
Medium

When will an Indian investor in a US Dollar based fund benefit?

Practice question from Nism VA Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    When US Dollar becomes weak

  2. When US Dollar becomes stronger

    Correct answer

  3. C

    When US Dollar remains steady

Why this is the answer

An Indian investor will benefit when the US Dollar strengthens against the Indian Rupee. If the US Dollar appreciates, the investor’s returns in Indian Rupees will increase when the value is converted.

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