NISM INVESTMENT ADVISER LEVEL 1 - 6
NISM INVESTMENT ADVISER LEVEL 1
Mock Test with Answer key - Click Here >>
Q 1. Who is eligible to invest in the Floating Rate Government of India Bond?
A) Only Indian residents
B) Only Non-Resident Indians (NRIs)
C) Both Indian residents and NRIs
d) Only government employees
Q 2. How often is the interest rate on the Floating Rate Government of India Bond reset?
A) Annually
B) Monthly
C) Quarterly
d) Daily
Q 3. What characterizes wraps and platforms in the financial advisory context?
a) Standardized model portfolios
b) SEBI-regulated advisers
c) Shared revenue models
d) Regulatory aggregators
Q 4. What is the significance of periodically calculating Net worth?
a) To track daily expenses.
b) To understand the financial strength.
c) To assess future income.
d) To monitor income and expenses.
Q 5. What does the Dividend Yield measure?
a) Earnings generated by the company
b) Return from dividend for an investor
c) Market capitalization
d) Enterprise value
Q 6. What are some of the risks associated with derivatives trading?
A) Legal or regulatory risk
B) Enhanced liquidity risk
C) Reduced participation
d) Lower operational risk
Q 7. Which fixed income assets are considered relatively less risky than pure corporate firms?
a) Municipal bonds
b) Government bonds
c) Corporate bonds
d) Junk bonds
Q 8. What does open interest measure in the futures and options markets?
A) Trading volume
B) The number of settled contracts
C) The total number of outstanding derivative contracts that have not been settled
d) The change in market sentiment
Q 9. What is the first step in making a budget for personal finance?
a) List and total discretionary expenses.
b) Deduct mandatory expenses from total income.
c) Ignore essential living expenses.
d) Postpone savings for the future.
Q 10. How should a credit card be used responsibly?
a) Leaving amounts as revolving credit
b) Ignoring the due date for payments
c) Accumulating debt for flashy lifestyle expenses
d) Keeping the credit card maxed out
Q 11. How does the stock exchange respond to unusually large price/volume movements based on news or media information?
a) By suspending all trading activities
b) By conducting investigations through surveillance officers
c) By increasing leverage for trading members
d) By reducing the Core Settlement Guarantee Fund
Q 12. How are debt instruments classified based on transferability?
a) Perpetual and non-perpetual
b) Government and corporate
c) Transferable and non-transferable
d) Participating and non-participating
Q 13. What is the primary reason for banks introducing deposits with specific terms like 333 days or 777 days?
A) To confuse customers and make banking more complex
B) To offer lower interest rates to customers
C) To attract funds for specific durations
d) To align with regulatory requirements
Q 14. What role do credit information bureaus play in the credit scoring process?
a) They determine the interest rates on loans
b) They govern the Credit Information Companies Act
c) They decide loan eligibility criteria
d) They provide credit cards to individuals
Q 15. What does a vibrant primary market provide for early investors in a company?
a) It limits their investment options.
b) It discourages them from investing in early-stage businesses.
c) It offers an exit option.
d) It restricts the growth of early-stage businesses.