NISM INVESTMENT ADVISER LEVEL 1
NISM INVESTMENT ADVISER LEVEL 1
Mock Test with Answer key - Click Here >>
Q 16. What role does the online monitoring system play in the stock exchange?
a) Monitoring the price movements of all listed securities
b) Managing the Core Settlement Guarantee Fund
c) Providing loans to trading members
d) Facilitating off-line trading activities
Q 17. Why do equity investors typically have the potential for higher returns compared to debt investors, despite higher associated risks?
a) Equity investments allow investors to participate in a company's profits and growth
b) Equity investments are guaranteed by fixed interest rates.
c) Equity investors are less affected by market fluctuations.
d) Equity investments are less volatile than debt investments.
Q 18. What is the regulatory framework governing the trading of derivatives in India?
A) RBI Act 1934
B) Securities Contracts (Regulation) Act, 1956 (SC(R)A)
C) SEBI Act 1992
d) Companies Act 2013
Q 19. What is the primary function of depository participants (DPs)?
a) Managing risk in the overall financial system.
b) Selling new issuances of securities to investors.
c) Holding securities and managing bank accounts for institutional investors.
d) Conducting screen-based electronic trading of securities.
Q 20. What is the purpose of the index-based market-wide circuit breaker system?
a) To determine the face value of securities
b) To regulate the number of trades in the market
c) To bring about a coordinated trading halt in case of abnormal index movements
d) To measure the efficiency of corporate management
Q 21. Who is allowed to purchase National Savings Certificates (NSCs)?
A) NRIs and HUFs
B) Only individuals
C) Companies and trusts
d) Both individuals and companies
Q 22. What is the primary role of FIMMDA in the derivatives markets?
A) To provide investment advice to individuals
B) To act as an arbitrator for disputes between individuals
C) To define standardized derivative contracts
d) To function as the principal interface with regulators on market-related issues
Q 23. Why might keeping the EMI amount the same while changing the loan tenure be advantageous?
a) It reduces the loan amount
b) It leads to optimal financial stability
c) It helps in keeping track of consistent payments
d) It lowers the interest rate
Q 24. How do stock markets contribute to efficient governance through changes in corporate control?
a) By fixing prices at predetermined levels
b) By regulating the issuance of securities
c) By serving as a market for efficient governance
d) By generating benchmark indices
Q 25. What is a common characteristic of distressed securities?
a) Low-risk and guaranteed returns
b) Availability at huge discounts
c) Prohibited for holding by institutional investors
d) Limited risk diversification opportunities