NISM INVESTMENT ADVISER LEVEL 1 - 8
NISM INVESTMENT ADVISER LEVEL 1
Mock Test with Answer key - Click Here >>
Q 1. In a loan with an interest rate of 7%, what is the principal component of the first EMI for a 10-year period with monthly installments?
a) Rs. 5,833
b) Rs. 5,777
c) Rs. 6,440
d) Rs. 10,606
Q 2. Which Michael Porter's strategy involves positioning the firm as unique in the industry?
a) Cost Leadership
b) Defensive strategy
c) Differentiation strategy
d) SWOT analysis
Q 3. What is the formula to calculate the present value (PV) for a regular cash flow (C)?
a) PV = C/(1+r)^n
b) PV = C * ((1-(1/(1+r)^n))/r)
c) PV = FV/(1+r)^n
d) PV = FV * (1+r)^n
Q 4. What is considered an important factor in deciding the amount sanctioned for a loan against property?
a) Credit score
b) Fixed interest rate
c) Asset depreciation
d) Length of the loan tenor
Q 5. How is Default Risk measured for a bond?
a) Market interest rates
b) Bond coupon rates
c) Bond spread
d) Bond liquidity
Q 6. What does a positive Net Worth indicate about an individual's financial position?
a) High leverage
b) Insolvency
c) Strong financial position
d) Low liquidity
Q 7. In the Snowball strategy, what is the primary factor considered for deciding the order of repayment?
a) Interest rates
b) Total outstanding amount
c) Loan duration
d) Random selection
Q 8. What is the concern for investors in Masala Bonds issued by Indian entities?
a) Credit Risk
b) Liquidity Risk
c) Exchange Rate Risk
d) Inflation Risk
Q 9. Which of the following is NOT a limitation of forward contracts?
A) Counterparty risk
B) Lack of transparency
C) Settlement complications
d) Illiquidity
Q 10. What is the impact of ownership diversification in the primary market?
a) It increases the stakes of existing shareholders.
b) It limits the number of shareholders in a business.
c) It leads to a reduction in the ownership stakes of existing shareholders.
d) It discourages professional managers from joining the business.
Q 11. How is the Effective Annual Yield calculated for a semiannual-pay bond?
a) Effective Annual Yield = (1 + Semiannual Interest Rate)^2 - 1
b) Effective Annual Yield = (1 + Periodic Interest Rate)^2 - 1
c) Effective Annual Yield = (1 + Semiannual Interest Rate) / 2
d) Effective Annual Yield = (1 + Semiannual Interest Ratd)
Q 12. Who organizes futures trading in commodities in India?
A) Individual traders
B) Government agencies
C) Registered commodity brokers
d) International organizations
Q 13. Which department under the Ministry of Finance exercises control over matters relating to direct and indirect taxes?
a) Department of Economic Affairs
b) Department of Expenditure
c) Department of Revenue
d) Department of Investment and Public Asset Management
Q 14. What does the market turnover ratio indicate in the context of a stock?
a) The number of shares issued by the company
b) The efficiency of corporate management
c) The liquidity of the stock in the market
d) The intrinsic value of the stock
Q 15. What belief is associated with investors engaged in Fundamental Analysis?
a) Market price is always below intrinsic value
b) Intrinsic value may not differ from the market price
c) Intrinsic value will never merge with the market price
d) Intrinsic value is not important for stock valuation