NISM INVESTMENT ADVISER LEVEL 1 - 2
NISM INVESTMENT ADVISER LEVEL 1
Mock Test with Answer key - Click Here >>
Q 1. What is another term for company-specific risks?
a) Market risk
b) Idiosyncratic risks
c) Transactional risk
d) Systematic risk
Q 2. What is another term for Credit Risk in the context of fixed-income securities?
a) Market risk
b) Inflation risk
c) Default risk
d) Liquidity risk
Q 3. What is the denomination of Sovereign Gold Bonds (SGB)?
a) ₹1,000
b) ₹10,000
c) Units of one gram of gold
d) ₹1 lakh
Q 4. What types of instruments are popular among investors in the Indian Debt market due to their perceived low risk?
a) State Development Loans
b) Commercial Papers (CPs)
c) Floating Rate Bonds
d) Certificate of Deposits (CDs)
Q 5. Why is a contingency figure essential in the budget?
a) To allocate additional savings.
b) To ensure a fixed savings plan.
c) To account for sudden disruptions.
d) To meet unplanned expenses.
Q 6. Which Excel function is employed to ascertain the interest component of a loan repayment?
a) PMT function
b) PPMT function
c) IPMT function
d) IF function
Q 7. What does Yield to Maturity (YTM) represent for a bond?
a) Current market price of the bond
b) Expected rate of return on the bond if held until maturity
c) Annual coupon payment
d) Redemption value of the bond
Q 8. What is the minimum bid lot specified by the issuer in a book-built offer as per SEBI guidelines?
a) Rs. 5,000
b) Rs. 8,000
c) Rs. 10,000
d) Rs. 15,000
Q 9. Which of the following is a participant in the Indian money market?
a) Large-scale manufacturing companies
b) Retail investors
c) Non-governmental organizations
d) Agricultural cooperatives
Q 10. What is the minimum amount of investment required for the Post Office Monthly Income Scheme (POMIS)?
A) Rs. 10,000
B) Rs. 5,000
C) Rs. 2,000
d) Rs. 1,500
Q 11. What is the Savings Ratio formula?
a) Savings per year / Monthly Income.
b) Annual Savings / Annual Income.
c) Total Savings / Monthly Income.
d) Total Income / Monthly Savings.
Q 12. When the government offers a portion of its shares to the public in an IPO, what type of IPO is it?
a) Fresh Issue IPO
b) Combination IPO
c) Offer for Sale IPO
d) Open Market IPO
Q 13. What is a proxy measure for market risk?
a) Alpha
b) Beta
c) Gamma
d) Theta
Q 14. Which type of fixed income asset is generally considered risk-free, providing low returns?
a) Corporate bonds
b) Government bonds
c) Public sector undertakings bonds
d) Municipal bonds
Q 15. What is the annual compounded cost of revolving credit with a credit card that charges 3% per month?
a) 3%
b) 12%
c) 24.7%
d) 60%