NISM INVESTMENT ADVISER LEVEL 2 - 8

NISM INVESTMENT ADVISER LEVEL 2

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Q 1. In the National Pension System -NPS, the investor is alloted a _________.

Special NPS number

MANN

PRAN

PENSION Number

Q 2. Insurable interest is not of any importance in LIFE insurance contracts - State True or False ?

True

False

Q 3. ____________ offers benefit under Sec 80 C of the Income Tax Act and also has scope of good appreciation.

Bank Deposits in Nationalised Banks

Public Provident Fund

Equity Linked Saving Schemes

Kisan Vikas Patra

Q 4. The relationship between the yield of a bond and its price is ________.

always positively related

always inversely related

positively related in a rising interest rate scenerio

positively related in a falling interest rate scenerio

Q 5. The National Securities Clearing Corporation Ltd (NSCCL) is a counter party to both sides of a Collateralised borrowing and lending obligations (CBLO) transaction - True or False ?

True

False

Q 6. A bull run in the equity markets starts off with large cap stocks and then moves on to _________.

Banking Stocks

Low beta stocks

Mid cap and small cap stocks

Software stocks

Q 7. With respect to investments, what does 'Do not put all your eggs in one basket' refer to ?

Systematic Investment Plans (SIPs)

Equity Mutual Funds

Asset Allocation

Risk Profiling

Q 8. The face value of a company's share is Rs 5 and the current market price is Rs 60. The EPS is Rs 12. The company declares a dividend of 20%. What is the dividend yield ?

12%

5%

2.41%

1.67%

Q 9. Category _____ Alternative Investment Fund may use leverage for trading as per the SEBI (Alternate Investment Funds) Regulations, 2012.

I

II

III

IV

Q 10. ________ is considered as a form of mortgage.

Personal Loan

Housing Loan

Loan given by Banks

Loan which are taken by companies

Q 11. Which of these is TRUE ?

informing about family's medical history is a breach of good faith

after receiving the insurance policy, the insured need not disclose the facts he had concealed

insurable interest is of no significance in life insurance contracts but has a lot of importance in Non life insurance

Any information which can influence the insurer risk perception of the insured is important

Q 12. Making a good portfolio leads to diversification benefits in the form of enhanced risk-adjusted return. Which of these is an investor NOT able to do with a diversified portfolio?

Earn a higher level of return at the same level of risk

Reduce the level of risk, at the same level of return

Increase the level of return and level of risk

Earn a higher return at a lower level of risk

Q 13. Health insurance and motor insurance are examples of _______.

Income replacement need

Income protection need

Asset protection needs

None of the above

Q 14. Which of these is/are not considered as Alternative Investment Fund from the SEBI Alternative Investment Funds(AIF) Regulations, 2012?

ESOP Trusts

Employee welfare trusts or Gratuity trusts

Family trusts

All of the above

Q 15. The FACT SHEETS of a Mutual Fund are published on a ________ basis.

weekly

monthly

quarterly

half yearly

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