Test Your NISM-Series-10A: Investment Advisor (Level 1) Mock Tests Knowledge in 5 Minutes

1. Why must an investment adviser collect personal information from a client during the planning process?

A. To agree on the scope of relevant information beforehand B. To comply with SEBI's KYC and suitability regulations C. To ensure accuracy and transparency in the plan D. All of the above

2. Which of the following is not a part of the financial planning process? (NISM workbook)

A. Financing the investments B. Setting goals C. Develop financial planning recommendations D. Monitoring

3. In the avalanche mode of repayment of loan the amount paid first is the: (NISM workbook)

A. Loan with the highest interest rate B. Loan with the lowest interest rate C. Loan with the lowest amount D. Loan with the highest amount

4. In a P2P lending process the lender is (NISM workbook)

A. A financial institution B. A fund C. An individual D. A bank

5. A car loan is usually under ______. (NISM workbook)

A. Mortgage B. Pledge C. Moratorium D. Hypothecation

6. Which of the following is an unsecured loan? (NISM workbook)

A. Gold loan B. Car loan C. Personal loan D. Home loan

7. _______ defines the term "Securities". (NISM workbook)

A. The Depositories Act, 1996 B. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 C. Securities Contracts (Regulation) Act 1956 D. Securities Contracts (Regulation) Rules, 1957

8. Which of the following is an advantage that institutional investors bring to the financial markets? (NISM workbook)

A. Better ability to source and analyse information relevant to a security B. Greater accountability since they invest own funds C. Lower concentration of holding in a few investors D. All of the above

9. _______ is the market where issuers raise capital by issuing securities to investors for the first time. (NISM workbook)

A. Forward Market B. Primary Market C. Secondary Market D. Money Market

10. The investment of funds by insurance companies is regulated by the norms laid down by _____________. (NISM workbook)

A. Insurance Regulatory and Development Authority of India (IRDAI) B. RBI for debt investments and SEBI for equity investments C. Securities and Exchange Board of India D. Ministry of Finance