SEBI - Investor Certification Examination

SEBI - Investor Certification Examination

 4

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Q 31. Which NPS investment option is known for high return and high risk?

- C (Corporate Bonds)

- G (Government Securities)

- E (Equity)

- F (Fixed Deposits)

Q 32. What type of securities does the C (Corporate Bonds) option invest in?

- Government securities

- Equity-oriented investments

- Fixed income-bearing securities other than government securities

- Foreign stocks

Q 33. Which investment option is considered low return and low risk?

- E (Equity)

- C (Corporate Bonds)

- G (Government Securities)

- R (Real Estate)

Q 34. What are some instruments included in the A (Alternative Investments) option?

- Government bonds and fixed deposits

- Mutual funds and savings accounts

- Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

- Treasury bills and municipal bonds

Q 35. Which NPS investment option is not available for Tier II accounts?

- E (Equity)

- C (Corporate Bonds)

- G (Government Securities)

- B (Bank Deposits)

Q 36. What is the maximum proportion that can be invested in asset class E under the Active Choice option?

-50%

-60%

-75%

-90%

Q 37. What is the restriction for asset class A under the Active Choice option?

- Cannot exceed 10%

- Cannot exceed 20%

- Cannot exceed 5%

- Cannot exceed 25%

Q 38. What determines the allocation of funds in the Auto Choice option?

- The subscriber's investment history

- The subscriber's risk appetite

- The age of the subscriber

- The subscriber's occupation

Q 39. How does the lifecycle fund in the Auto Choice option change with the age of the subscriber?

- Increases exposure to equity as the subscriber ages

- Increases exposure to corporate bonds and government securities as the subscriber ages

- Maintains a constant allocation throughout the subscriber's life

- Increases exposure to alternative investments as the subscriber ages

Q 40. Which NPS investment option typically has the highest risk and return among the available choices?

- G (Government Securities)

- C (Corporate Bonds)

- E (Equity)

- F (Fixed Deposits)

Q 41. Which investment option is best suited for subscribers seeking low-risk investments?

- E (Equity)

- C (Corporate Bonds)

- G (Government Securities)

- R (Real Estate)

Q 42. What type of risk is associated with the E (Equity) investment option?

- Low risk

- Medium risk

- High risk

- Guaranteed returns

Q 43. Can subscribers withdraw their savings freely from the Tier II NPS account?

- Yes, whenever they want

- No, only after retirement

- Only after 5 years of contribution

- Only in case of emergency

Q 44. What is the main difference between Tier I and Tier II accounts in NPS?

- Tier I is mandatory with tax benefits, Tier II is voluntary without tax benefits

- Tier I allows free withdrawals, Tier II does not

- Tier I is for government employees only, Tier II is for private sector employees

- Tier I has a fixed interest rate, Tier II has a variable interest rate

Q 45. Which NPS account type requires a mandatory bank account?

- Tier I

- Tier II

- Both Tier I and Tier II

- Only for senior citizens

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