NISM Series IV Mock Test: Interest Rate Derivatives
Up to 30 full-length mock tests of 100 questions each, built on the official syllabus, with an explanation for every answer.
About the NISM Series IV exam
NISM Series IV tests interest rate derivatives — bond pricing and yields, duration, interest rate futures and options on exchanges, OTC products such as swaps and FRAs, hedging strategies, and the clearing and regulatory framework.
Who should take it: Associated persons of brokers dealing in interest rate derivatives, and treasury, ALM and fixed-income professionals.
NISM Series IV exam pattern
| Questions | 100 multiple-choice questions |
|---|---|
| Total marks | 100 |
| Duration | 120 minutes |
| Passing score | 60% |
| Negative marking | −0.25 mark per wrong answer |
Indicative pattern. Exam bodies revise patterns — confirm the details in the latest official notification before your exam.
Syllabus covered in our NISM Series IV question bank
Our 50-question bank for NISM Series IV covers every chapter below. Mock tests mix questions across all of them in the same proportion as the real paper.
- Interest Rates & Fixed Income Market10 practice questions
- Interest Rate Derivatives10 practice questions
- Exchange Traded Interest Rate Options4 practice questions
- Strategies Using Interest Rate Derivatives8 practice questions
- Trading Mechanism4 practice questions
- Clearing, Settlement & Risk Management6 practice questions
- Regulatory Framework3 practice questions
- Accounting and Taxation2 practice questions
- Code of Conduct & Investor Protection3 practice questions
Free NISM Series IV sample questions
Try five questions from our bank. Each mock test gives you 100 like these, with your score, chapter-wise analysis and explanations at the end.
When market yields rise, the price of an existing fixed-coupon bond:
- Rises
- Remains unchanged
- Rises only if the coupon is high
- Falls
Show answer & explanation
Answer: D. Falls
Bond prices and yields move inversely because future fixed cash flows are discounted at a higher rate.
A Forward Rate Agreement (FRA) is settled by:
- Exchanging the full notional principal at maturity
- Paying the difference between the agreed rate and the reference rate on a notional amount, without exchanging principal
- Delivering a government bond
- Exchanging currencies at a fixed rate
Show answer & explanation
Answer: B. Paying the difference between the agreed rate and the reference rate on a notional amount, without exchanging principal
FRAs are cash-settled on the interest differential applied to a notional principal.
A borrower with a floating-rate loan wants protection against rising rates while keeping the benefit of falling rates. She should buy an interest rate:
- Cap
- Floor
- Collar sold to the bank
- Receiver swaption
Show answer & explanation
Answer: A. Cap
A cap pays when the reference rate exceeds the cap rate, limiting borrowing cost; if rates fall she still pays less.
A bank holding a large portfolio of government bonds fears yields will rise. To hedge, it should:
- Buy interest rate futures
- Buy more long-dated bonds
- Buy a call option on bond futures
- Sell interest rate futures
Show answer & explanation
Answer: D. Sell interest rate futures
Rising yields cut bond prices; a short futures position gains as futures prices fall, offsetting the loss.
Orders in exchange-traded interest rate futures are matched on the trading system on the basis of:
- The size of the order only
- The member's seniority
- Random allocation
- Price-time priority
Show answer & explanation
Answer: D. Price-time priority
The best-priced order executes first; among equal prices, the earliest order gets priority.
NISM Series IV mock test plans
Every plan unlocks one full-length mock test per day of the plan. Prices include GST.
| Plan | Mock tests | Questions | Price |
|---|---|---|---|
| 10 Days | 10 mock tests | 1,000 questions | ₹199 incl. GST |
| 15 Days | 15 mock tests | 1,500 questions | ₹279 incl. GST |
| 20 Days Popular | 20 mock tests | 2,000 questions | ₹349 incl. GST |
| 30 Days Best value | 30 mock tests | 3,000 questions | ₹449 incl. GST |
Official study material
Links open the official website. We do not host or alter official material.
NISM Series IV mock test FAQs
How many questions are there in the NISM Series IV exam?
The NISM Series IV paper has 100 multiple-choice questions for 100 marks, to be completed in 120 minutes. This is the indicative pattern — always confirm it in the latest official notification.
Is there negative marking in NISM Series IV?
Yes. −0.25 mark per wrong answer (25% of the marks for that question). Our mock tests apply the same rule.
What is the pass mark for NISM Series IV?
You need 60% to pass. Our mock tests show pass or fail against the same mark.
How many NISM Series IV mock tests do I get?
One full-length mock test is unlocked for each day of your plan: 10, 15, 20 or 30 mock tests on the 10 Days, 15 Days, 20 Days or 30 Days plans. You can retake any unlocked test while your plan is active.
Are these the actual exam questions?
No. Every question is an original practice question written to match the official syllabus and the exam's style. Reproducing real exam questions is not permitted, and we do not do it.
Where can I get the official NISM Series IV study material?
NISM provides the latest workbook free of cost on its official portal after a short registration. The link is in the Official study material section on this page.