NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)

CERTIFICATION EXAM – CASELET NO. 4

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TEST DETAILS – The NISM Series XB – Investment Adviser Certification (Level 2) exam is a 100 mark exam with
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Studies having 4 multiple choice questions of 2 marks each ( A total of 36 + 32 = 68 questions). There is 0.25%
negative marking. The time duration is 120 Minutes.

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 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 4

CASELET NO. 4

Mr. Anil, age 40 years, is a daily wage earner (taxi driver) and his wife is a home maker. He has one daughter
of age 12 years. He is unsure which insurance to buy and finally buys a life insurance cover for his wife based
on the suggestion of a friend. The friend also suggests to him to keep his spare money at home and not to
deposit in a bank as a bank may fail.

Question 1 Mr Anil's friend had suggested to buy a life insurance cover for his wife.
Was the suggestion correct ?

(a) Yes

(b) No

Correct Answer 1 No

Answer It was not correct as life insurance is bought for a person who has a family to
Explanation support and is an income earner.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 4

Mr. Anil, age 40 years, is a daily wage earner (taxi driver) and his wife is a home maker. He has one daughter of age
12 years. He is unsure which insurance to buy and finally buys a life insurance cover for his wife based on the
suggestion of a friend. The friend also suggests to him to keep his spare money at home and not to deposit in a bank as
a bank may fail.

Question 2 Does Mr. Anil need a medical insurance policy, if YES, then which one ?

(a) No, he does not need a medical insurance policy as he is a daily wage earner

(b) Yes, Family Insurance Policy will be best suited for him

(c) Yes, but only for his wife and daughter as he is extremely fit

(d) Yes, but only for him as his wife and daughter are not earning

Correct Answer 2 Yes, Family Insurance Policy will be best suited for him

Answer Every individual needs a medical insurance policy. So a full family cover
Explanation medical policy is the best option.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 4

Mr. Anil, age 40 years, is a daily wage earner (taxi driver) and his wife is a home maker. He has one daughter of age
12 years. He is unsure which insurance to buy and finally buys a life insurance cover for his wife based on the
suggestion of a friend. The friend also suggests to him to keep his spare money at home and not to deposit in a bank as
a bank may fail.

Question 3 Has Mr. Anil taken the right decision by buying the insurance policy in
his wife's name ? If NO, then which insurance should have been bought ?

(a) Yes, he has taken the right decision by buying insurance in his wife's name

(b) No, he should have bought a ULIP in his name

(c) No, he should have bought a term plan in his name

(d) No, he should have bought a money back plan in his name

Correct Answer 3 No, he should have bought a term plan in his name

Answer Life insurance is basically meant for a person who has a family to support and
Explanation is an income earner. Mr. Anil is the income earner and not his wife. So Mr.
Anil will need life insurance and term insurance suits him best.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 4

Mr. Anil, age 40 years, is a daily wage earner (taxi driver) and his wife is a home maker. He has one daughter of age
12 years. He is unsure which insurance to buy and finally buys a life insurance cover for his wife based on the
suggestion of a friend. The friend also suggests to him to keep his spare money at home and not to deposit in a bank as
a bank may fail.

Question 4 Mr. Anil's friend has suggested to keep the spare money at home and not
in a bank as the bank may fail. Was this suggestion correct ?

(a) Yes

(b) No

Correct Answer 4 No

Answer The chance of a bank failing are very rare and even if a bank fails, the deposits
Explanation are insured upto a certain limit.
 NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 4

Practice Question Banks also available for :

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NISM Series III A: Securities Intermediaries Compliance certification Exam
NISM Series X A : Investment Adviser (Level 1) Certification Exam
NISM Series X B: Investment Adviser (Level 2) Certification Exam

NCFM

NCFM Financial Markets: A Beginners Module

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BSE

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NISM SERIES X B : INVESTMENT ADVISER (LEVEL 2)
CERTIFICATION EXAM – CASELET NO. 4