NISM Series X-A: Investment Adviser (Level 1) Mock Test - Free Demo

NISM Series X-A: Investment Adviser (Level 1) Mock Test – Free Demo

1 / 10

A fund that provides both equity and unsecured debt financing to early-stage companies would classify as a __________.

a) Investment Fund

b) Unsecured bond fund

c) Venture capital fund

d) NBFC

2 / 10

What day count convention is used in the treasury bill markets?

a) Actual/365

b) Actual/Actual

c) Actual/360

d) 30/360

3 / 10

An investment adviser faces a dilemma when recommending portfolio management schemes (PMS) for his client. The best PMS product is offered by a company where his spouse works. How can he resolve this conflict of interest?

a) As there is a conflict of interest, this PMS product is ineligible as per SEBI regulations and should be dropped

b) He should make a full disclosure to his client of his spouse's employment in the PMS company and also why the product is best suitable to him

c) As there is a conflict of interest, this PMS product should be dropped and not recommended

d) As the PMS product is best, he should recommend it to his client without any fear

4 / 10

Mr. Santhanam received Rs 15,00,000 and deposited it in an investment with an 11% interest rate. If he withdraws Rs 2,00,000 annually, how long can he continue doing so?

a) 7.87 years

b) 8.56 years

c) 7.50 years

d) 16.70 years

5 / 10

5. When anticipating a decline in market prices, fund managers can minimize the loss in portfolio value by _________.

a) Using equity derivatives

b) Speculating

c) Not buying and selling shares at all for some days

d) Borrowing from banks

6 / 10

Sharpe and Treynor Ratios are measures of __________.

a) Average return

b) Beta of the portfolio

c) Risk adjusted return

d) Risk

7 / 10

Identify the unique characteristic of the interest paid on an Inflation Indexed bond.

a) The interest is re-set periodically as per the current inflation rates

b) These bonds provide negative real rate of return due to its special interest rate

c) The interest is fixed at the time of issue, as per the then prevailing interest rates in the economy

d) The interest on these bonds is tax free

8 / 10

An investor wanting to purchase units of an ETF will transact with the __________ and receive the units in __________

a) AMC, account statement

b) Distributors; Account statement

c) Distributor, demat account

d) Brokers; demat account

9 / 10

Which type of corporate action divides the existing shares of a particular face value into smaller denominations?

a) Buy Back

b) Stock Split

c) Right Issue

d) Bonus Issue

10 / 10

10.

Lisa needs Rs.7 lakhs urgently for an emergency situation. Which investment is she most likely to liquidate or use?

a) Shares of Hindalco Ltd

b) Gold jewellery

c) 5-year bonds of a finance company

d) Bank deposit

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NISM Series X-A: Investment Adviser (Level 1) Mock Test - Free Demo