Professional Documents
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Level 1 NISM
Level 1 NISM
a. Secondary Market
b. Primary Market
c. Money Market
d. Forward Market
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Chapter 2: Sample Questions
1. An investor bids Rs.45 in a book built public issue where the cut-off is discovered as
Rs.50.
a. The investor will get full allotment of shares.
b. The investor will get proportionate allotment based on over subscription of shares.
c. The investor will be allotted shares at Rs.50.
d. The investor will not get an allotment of shares.
3. All primary market issues must be public issues. State whether True or False.
a. TRUE
b. FALSE
4. In which type of primary market issues are securities of an unlisted company issued
to a select set of investors?
a. Preferential Issue
b. Private Placement
c. Offer for sale
d. Qualified Institutional Placement
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Chapter 3: Sample Questions
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Chapter 4: Sample Questions
1. What is the tax benefit available on the Senior Citizen Savings Scheme?
a. Interest is exempt from tax
b. Investment gives Section 80C benefits
c. Maturity value is exempt from tax
d. All of the above
3. An investor purchases equity shares of a Sugar producing company. The returns from
his investment do not face
a. Interest rate risk
b. Operations risk
c. Business risk
d. Market risk
4. An investor holds a large portfolio of shares from different companies and industries.
Her portfolio is likely to be protected from
a. Systematic risk
b. Unsystematic risk
Chapter 6: Sample Questions
2. Mr. Khanna requires Rs.10 lakhs in six months’ time to pay his son’s admission fees.
An appropriate investment to set aside money for his goal would be
a. Equity shares of high-growth companies
b. Real estate
c. Short term debt fund
d. Long term corporate bond
3. Jaya needs Rs.5 lakhs urgently for an emergency medical procedure. Which investment
is she most likely to tap?
a. Shares of XYZ Ltd.
b. Bank deposit
c. Gold jewellery
d. 5-year bonds of a finance company
4. A conservative investor wants to accumulate Rs.20 lakhs in 3 years time. What would
be an appropriate investment option for him?
a. Shares of selected growth companies
b. Bank deposits and good quality bonds
c. Property
d. Gold funds
Chapter 8: Sample Questions
1. Which of these asset classes is most likely to meet the objective of generating regular
income?
a. Equity
b. Cash and equivalents
c. Debt
2. Which of these asset classes is primarily used to meet regular needs for liquid cash?
a. Debt
b. Cash and equivalents
c. Equity
3. The long term goal of a young investor is to build a corpus that is adequate to serve his
income needs after retirement. The portfolio when constructed, should have a higher
allocation to
a. Debt
b. Cash equivalents
c. Equity
4. An investor who seeks a high level of return and is willing to bear the risks of such
investments is likely to be recommended
a. Aggressive portfolio
b. Conservative portfolio
c. Moderate portfolio
Chapter 9: Sample Questions
2. In which of the following situations will the insured not have insurance cover?
a. Surrendered policy
b. Paid-up policy
c. Term policy
d. Both (a) and (b)
3. The premium payable on a ULIP is higher for the same sum assured as a term policy
because
a. The period of cover is shorter
b. A portion of the premium is used for investment
c. The pool of insured is smaller
d. The risk is higher
2. For a person to be qualified as a NRI, he must have stayed outside India for more than
days in a previous financial year.
a. 365
b. 280
c. 182
d. 150
a. Son
b. Daughter-in-law
c. Mother-in-law
d. Father-in-law
Chapter 12: Sample Questions