Test Your NISM-Series-21B: Portfolio Managers Mock Tests Knowledge in 5 Minutes

1. Which of the following is a characteristic of Financial Investments?

A. They are essentially claims on future cash flows. B. They include real estate and gold. C. They are also called Real Investments. D. Their ownership is always easily transferable.

2. The additional return required by the investor over and above the normal rate of return, when the investment is risky is called ________. (NISM workbook)

A. Alpha B. Risk premium C. Risk free rate of return D. Both b & c

3. Future value of the investment is influenced by __________. (NISM workbook)

A. Time period B. Rate of return C. Both a & b D. None of the above

4. ____________________ represent ownership in a company that entitles its holders to participate in its profits and the right to vote on the company’s affairs. (NISM workbook)

A. Bonds B. Equity Shares C. Commercial Papers D. All the above

5. Financial assets are generically classified into two broad categories __________. (NISM workbook)

A. Real estate & gold B. Bonds and deposits C. Debt & Equity D. Equity & gold

6. In India, the Central Government issues ____________. (NISM workbook)

A. Certificate of deposits B. Dated securities C. Both a & b D. Treasury bills

7. Offer for sale (OFS) is method of share sale for ___________ (NISM workbook)

A. unlisted companies B. listed companies C. startups D. all the above

8. Which of the following is essential for the public issue of a debt security? (NISM workbook)

A. The debt instruments must be credit rated. B. The debt instruments should have a minimum coupon specified. C. The debt issuer must stand as guarantor for the payment of principal and interest. D. The debt issue size should be greater than Rs. 5000 crs.

9. Which of the following is the function of the secondary markets? (NISM workbook)

A. Provide a platform for making public issues B. Provide information about public companies C. Provide liquidity for securities issued D. All the above

10. The risk of default on obligations arising out of trading is controlled by the exchange by ________. (NISM workbook)

A. Imposing circuit filters B. Imposing margins C. Blocking high value trades D. Restricting types of investors