Test Your NISM-Series-10B: Investment Advisor (Level 2) Mock Tests Knowledge in 5 Minutes

1. Which of the following is a cost associated with investing in an ETF?

A. Brokerage commissions B. The difference between buy and sell prices (spread) C. Fees charged for managing the fund D. All of the above

2. Which of the following characteristics are required for a risk to be insurable? (NISM workbook)

A. The risk does not involve any prospect of gain B. The loss must be accidental and uncertain C. The loss incurred should be definite and quantifiable D. All the options given

3. In a/an ___________ insurance plan, the exact losses incurred by an insured are not ascertainable or are difficult to ascertain. (NISM workbook)

A. Life benefit B. Defined benefit C. Value-based D. Indemnity

4. The lock-in period for unit-linked insurance policy is ___________ to reflect the long-term, protection function of the policy. (NISM workbook)

A. 5 years B. 7 years C. 3 years D. 10 years

5. When a bank becomes the corporate agent of an insurance company it is referred to as a _________. (NISM workbook)

A. Direct Insurance Broker B. Insurance Agent C. Bancassurance Arrangement D. Re-insurance Broker

6. The insured would get which of the following benefits from investment cum insurance policies? (NISM workbook)

A. Death cover B. Either (a) or (c) C. Survival benefits D. Both death cover and survival benefits

7. Which of the following products is a pure insurance product? (NISM workbook)

A. Whole life policy B. Money back policy C. ULIP D. Term insurance policy

8. In which of the following situations will the insured not have insurance cover? (NISM workbook)

A. Term policy B. Both (a) and (c) C. Surrendered policy D. Paid-up policy

9. The premium payable on a ULIP is higher for the same sum assured as a term policy because: (NISM workbook)

A. The pool of insured is smaller B. A portion of the premium is used for investment C. The period of cover is shorter D. The risk is higher

10. The term of insurance in non-life insurance is typically __________. (NISM workbook)

A. One year B. Flexible C. Decided by the insured D. Decided based on sum insured