FREE NISM Series-X-A: Investment Adviser (Level 1) Question and Answers

Question 1

Let's assume Jay has purchased a pure risk cover product, which means he has purchased ___________.

Accepted Answer

Term insurance policy

Answer

Whole life policy

Answer

Unit linked insurance policy

Answer

Endowment policy

Question 2

Which of the following categories of risk applies to an investment in a government security issued with a set interest rate?

Accepted Answer

Interest rate risk

Answer

Business risk

Answer

Credit risk

Answer

Liquidity risk

Question 3

Insurance typically represents _________.

Accepted Answer

Risk transfer

Answer

Risk Retention

Answer

Risk Reduction

Answer

Risk prevention

Question 4

Which of the following is impacted by financial market activity?

Accepted Answer

All of the above

Answer

spending decision by individuals and business firms

Answer

the economy's location in the business cycle

Answer

personal wealth

Question 5

Which one of the following is not a component of personal financial planning?

Accepted Answer

Churning investment portfolio often to achieve best returns

Answer

Defining a basic asset allocation for the client

Answer

Risk profiling of client

Answer

Monitoring achievement of goals periodically

Question 6

An investor invests in the underlying asset of __________ in order to receive a variable annuity.
1. Debt Instruments
2. Equity
3. Gold

Accepted Answer

Only 2 and 3

Answer

Only 1 and 3

Answer

Only 1 and 2

Answer

All of the above

Question 7

A defined contribution plan is _________.

Accepted Answer

Unrecognized Provident Fund

Answer

Voluntary Retirement Scheme

Answer

Leave salary

Answer

Gratuity