NISM INVESTMENT ADVISER LEVEL 1 - 7
NISM INVESTMENT ADVISER LEVEL 1
Mock Test with Answer key - Click Here >>
Q 1. What is a key factor to consider when investing in soft commodities?
a) Global demand and supply
b) Geopolitical crisis
c) Reserve assets
d) Capital appreciation
Q 2. What is the market convention for day count when calculating bond values?
a) 365/365
b) 30/360 US
c) 30/365
d) 30/360 European
Q 3. Why is proper allocation of the savings amount crucial in the budget?
a) To increase overall expenses.
b) To meet discretionary expenses.
c) To create contingency plans.
d) To minimize savings.
Q 4. What is the Price to Earnings (P/E) ratio used to evaluate?
a) Cash flow
b) Book values
c) Sales
d) Dividends
Q 5. What is the relationship between a bond's price and rate of return in the price-yield curve?
a) Direct relationship
b) No relationship
c) Inverse relationship
d) Exponential relationship
Q 6. What is another term for a home equity loan?
a) Fixed rate loan
b) Variable rate loan
c) Loan against property (LAP)
d) External benchmark loan
Q 7. Which segment of the insurance market was opened to private service providers in 2001?
a) Life insurance
b) General insurance
c) Health insurance
d) Unit linked products
Q 8. What does the PEG ratio take into account?
a) Price, earnings, and earnings growth rates
b) Price, equity, and growth rate
c) Price, dividends, and market capitalization
d) Price, revenue, and cash flow
Q 9. Which platform is used for trading/reported Repo transactions against G-secs in the Indian money market?
a) NDS-CALL
b) F-TRAC
c) CROMS
d) RBI Minimum market order
Q 10. How frequently should Personal Finance Ratios be calculated and compared?
a) Monthly
b) Quarterly
c) Annually
d) Only when major expenses occur
Q 11. What is the primary focus of estate planning?
a) Maximizing short-term gains
b) Minimizing taxes
c) Documenting daily expenses
d) Managing current income
Q 12. What does the Coupon Yield measure?
a) The market value of a bond
b) The annual interest payable on the bond as a percentage of the face value
c) The discount factor used in bond valuation
d) The promised coupon on the Principal
Q 13. What is one of the key issues that financial planning helps Vinod address?
a) Maximizing current expenses
b) Creating unnecessary debts
c) Identifying future needs and funding them
d) Avoiding savings for emergencies
Q 14. What negatively impacts a credit score?
a) Regular and timely repayment of loans and credit cards
b) Low utilization of credit limits
c) High utilization of credit card limits and personal loans
d) Infrequent credit applications
Q 15. What is the significance of the ratio of market capitalisation to GDP of a country?
a) It determines the face value of securities
b) It indicates the level of liquidity in the market
c) It measures the efficiency of corporate management
d) It facilitates efficient governance in corporations