NISM INVESTMENT ADVISER LEVEL 2 - 9

NISM INVESTMENT ADVISER LEVEL 2

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Q 1. Investors who undergo a change in status from resident to non-resident or vice versa have to ______________.

change their Status with the respective financial service providers

change the details of address

change the details in their bank accounts

all of the above
 
Q 2. EMI for a loan can be worked out using the _____ function in MS Excel

EMI

PV

PMT

NPV
 
Q 3. Which of the following factor is not considered as a description of risk ?

Current Yield

Volatility

Default

Mismatch between actual returns and estimated returns
 
Q 4. Theft / Burglary Insurance is an example of ________.

Income replacement need

Income protection need

Asset protection needs

All of the above
 
Q 5. If the nominal rate of interest is 9% and the rate of inflation is 3%, what is the real rate of interest?

6%

12%

6.27%

5.83%
 
Q 6. ________ is actually a consumption expenditure but can prove to be a smart investment.

Buying the latest model of a car

Going on a foreign vacation

Buying a hi end music system

Education
 
Q 7. In which analysis are the Economic, Industry and Company (EIC) factors considered ?

Bottom up approach of Technical Analysis

Candle Stick pattern of Technical Analysis

Top Down approach of Fundamental Analysis

Bollinger Band analysis
 
Q 8. If an investor invests in an IPO by leveraging, his profits will depend on ______.

The Interest he has paid and issue price

Shares allotted to him and the listing premium

Issue price & listing price

Cost of borrowing and period of borrowing
 
Q 9. For Long Term Debt instruments, the highest credit rating symbol assigned is ____ .

A+

AAA

A1

AX
 
Q 10. Which of the following process is most time consuming with respect to investments in equities ?

Non-discretionary Portfolio Management Services

Discretionary Portfolio Management Services

Mutual Funds

Direct Investing
 
Q 11. If a person wishes to take a loan against some portion of his Mutual Fund holdings, he will have to ____________.

Mark lien on the entire holdings, irrespective of the requirement

Transfer the required portion to a new folio and mark a lien on it

Transfer the required portion to a new folio and make the lender the joint holder

Mark lien only on the portion required in the existing folio
 
Q 12. ________ and ________ do NOT mean the same thing.

Coupon and Yield

Tenor and Tenure

Purchasing power risk and Inflation risk

Credit risk and Default risk
 
Q 13. The shares which are listed on a Stock Exchange after an IPO are listed at ________.

the issue price or at a premium or Discount to the issue price

the issue price only

a premium

a discount
 
Q 14. Mr. X has taken a short position in a 'PUT' option. He therefore believes that the price of the underlying will ______ .

not go below the strike price

not go above the strike price

go below the strike price

not go below the market price
 
Q 15. In non-discretionary Portfolio Management Services (PMS), ______ .

the portfolio manager takes the investment decisions

the broker takes the investment decisions

the portfolio manager advices but the investment decisions are taken by the client

the portfolio manager advices but the investment decisions are taken by the mutual fund adviser, in which funds to invest
 

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