n NISM Certifications
X NISM Series X
Medium

Which statement is false regarding securities and derivatives?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Delivery-based securities are deemed non-speculative transactions

  2. Gains from currency derivatives are always capital gains

    Correct answer

  3. C

    Derivative transactions can be non-speculative business transactions

  4. D

    Holdings of FPIs are always treated as capital assets

Why this is the answer

Gains from currency derivatives can be classified as business income if trading is frequent; they are not always capital gains.

Test yourself for real

Take a full NISM Series X mock test.

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