NISM Series XVI Mock Test: Commodity 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 XVI exam
NISM Series XVI covers commodity derivatives — commodity markets and indices, futures and options on commodities, pricing, hedging strategies for producers and users, trading, clearing and the regulatory framework.
Who should take it: Associated persons of brokers in the commodity derivatives segment, and hedgers in agriculture, metals and energy businesses.
NISM Series XVI 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 XVI question bank
Our 50-question bank for NISM Series XVI covers every chapter below. Mock tests mix questions across all of them in the same proportion as the real paper.
- Introduction to Commodity Markets5 practice questions
- Commodity Indices3 practice questions
- Commodity Futures9 practice questions
- Commodity Options7 practice questions
- Strategies using Commodity Futures and Options7 practice questions
- Trading Mechanism4 practice questions
- Clearing, Settlement and Risk Management7 practice questions
- Legal and Regulatory Environment3 practice questions
- Accounting and Taxation2 practice questions
- Codes of Conduct and Investor Protection3 practice questions
Free NISM Series XVI 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.
Regulation of commodity derivatives in India was transferred from the Forward Markets Commission to SEBI in:
- 2008
- 2003
- 2015
- 2020
Show answer & explanation
Answer: C. 2015
The FMC merged with SEBI in September 2015, making SEBI the regulator of commodity derivatives.
A commodity index is mainly used to:
- Fix government procurement prices
- Track the overall price movement of a basket of commodities
- Measure stock market liquidity
- Calculate import duties
Show answer & explanation
Answer: B. Track the overall price movement of a basket of commodities
Indices summarise commodity price trends and can serve as benchmarks or underlyings.
Spot price of a commodity is ₹5,000 per quintal. Interest is 10% p.a. (simple) and storage cost for 3 months is ₹30 per quintal. The fair price of a 3-month futures contract is:
- ₹5,155
- ₹5,125
- ₹5,530
- ₹5,030
Show answer & explanation
Answer: A. ₹5,155
F = 5,000 × (1 + 0.10 × 3/12) + 30 = 5,125 + 30 = ₹5,155.
On Indian commodity exchanges, an exercised option on commodity futures devolves into:
- Physical delivery of the commodity immediately
- A cash payment equal to the strike price
- A futures position in the underlying contract
- A new option with a later expiry
Show answer & explanation
Answer: C. A futures position in the underlying contract
Options on futures convert into the corresponding long or short futures position on exercise.
A jeweller holds gold inventory and fears prices will fall before it is sold. The appropriate hedge is to:
- Sell gold futures
- Buy gold futures
- Buy gold call options
- Buy more physical gold
Show answer & explanation
Answer: A. Sell gold futures
A short hedge on the inventory offsets losses if gold prices decline.
NISM Series XVI 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 XVI mock test FAQs
How many questions are there in the NISM Series XVI exam?
The NISM Series XVI 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 XVI?
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 XVI?
You need 60% to pass. Our mock tests show pass or fail against the same mark.
How many NISM Series XVI 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 XVI 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.