Sample Questions

NISM-Series-10B: Investment Advisor (Level 2) Mock Tests — 5 random MCQs with answers & explanations

← Back to NISM-Series-10B: Investment Advisor (Level 2) Mock Tests

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

Q1 What is a key risk factor that investors must understand before buying a Unit Linked Insurance Plan (ULIP)?

  • A. Returns are not guaranteed Correct Answer
  • B. Insurance cover is zero
  • C. Money is locked for 20 years
  • D. Premiums are fully taxable
Explanation:
In ULIPs, investment risk is borne by the policyholder, meaning fund returns fluctuate with market conditions and are not guaranteed.

Marks: 1

Q2 What is the primary benefit of a Systematic Transfer Plan (STP) in mutual funds?

  • A. To double the sum assured of life insurance
  • B. To systematically move funds from one scheme (like debt) to another (like equity) to stagger market entry Correct Answer
  • C. To earn guaranteed bank interest rates
  • D. To avoid paying capital gains tax permanently
Explanation:
An STP enables an investor to transfer a fixed sum regularly from a low-risk fund (e.g., liquid) to a growth fund (e.g., equity), averaging purchase costs over time.

Marks: 1

Q3 The term of insurance in non-life insurance is typically __________. (NISM workbook)

  • A. One year Correct Answer
  • B. Flexible
  • C. Decided by the insured
  • D. Decided based on sum insured
Explanation:
The term of non-life insurance policies is typically one year, though some policies may be for two or three years.

Marks: 1

Q4 When calculating the corpus required to provide income for expenses in retirement, which Excel function is useful?

  • A. PMT
  • B. PV Correct Answer
  • C. FV
  • D. RATE
Explanation:
The PV function can calculate the lump sum (corpus) needed today to generate a series of future income payments, discounted at a specific rate.

Marks: 1

Q5 Does a "Critical Illness" policy require hospitalization bills to pay out?

  • A. No, it pays a lump sum as soon as a covered illness is diagnosed Correct Answer
  • B. Only for surgeries
  • C. It pays only to the hospital directly
  • D. Yes, always
Explanation:
Critical illness policies are defined benefit plans. They pay out the full pre-agreed sum assured upon valid diagnosis of a covered illness, regardless of actual medical bills.

Marks: 1

Start Mock Tests →

Explore More Mock Tests

Practice structured mock tests designed exactly like real NISM exams.

Browse All Subjects Start Free Test

Notify me when you add new Sample Questions

Free account · No payment needed for Test 1

Create a free PassNISM account

Continue with Google to start a free NISM mock test (Test 1) for this subject, save scores, and compare attempts.

Continue with Google