Sample Questions

NISM-Series-17: Retirement Adviser Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 What is a major drawback of the Post Office Monthly Income Scheme (POMIS) for someone planning their retirement income?

A. There is no guarantee of income
B. Reinvestment risk due to changing interest rates Correct Answer
C. High penalty fees for early withdrawal
D. Risk of the government failing to pay

Explanation:

If interest rates drop by the time the scheme matures, you may have to reinvest your money at a lower rate. This can reduce your future monthly income, which is known as reinvestment risk.

Marks: 1

Q2 In the NPS "Auto Choice" lifecycle plan, what is the maximum amount allowed in stocks (Equity) for someone aged 35?

A. 40%
B. 50% Correct Answer
C. 75%
D. 25%

Explanation:

In the standard (Moderate) Auto Choice plan, the system automatically keeps your equity investment at a maximum of 50% until you reach age 35, after which it begins to gradually reduce the risk.

Marks: 1

Q3 According to the NPS Trust Deed, what is the limit of a member's interest in the scheme?

A. A guaranteed 10% return every year
B. Limited specifically to the units and money in their own account Correct Answer
C. A share of all the profits made by the whole NPS system
D. Whatever amount the government decides to pay them

Explanation:

An NPS member is not an owner of the whole fund. Their legal right is only to the specific money and investment units held in their personal PRAN account.

Marks: 1

Q4 Before buying a company's bond for retirement, which risk is most important to check?

A. Inflation risk
B. Credit risk Correct Answer
C. Risk of low returns
D. Market risk

Explanation:

Credit risk is the chance that the company might not be able to pay back the money it borrowed. Checking this help you avoid losing your principal if the company goes bankrupt.

Marks: 1

Q5 Which of the following statements about a "Power of Attorney" (POA) is FALSE?

A. Both the person giving the power and the person receiving it must be adults
B. A POA is a legal process used to change the ownership (mutation) of a property Correct Answer
C. A POA gives another person the legal right to act on your behalf
D. None of these statements are false

Explanation:

A POA is just a permission slip for someone to act for you. It does not transfer ownership or change who officially owns a property (that requires a Sale Deed).

Marks: 1

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