OTHER IMPORTANT QUESTIONS – NISM XB

Who decide the rates of CBLO?

Which is not a risk measure?

What will decide that option can be exercised due to being in profit?

When there is a change in residential status of the investor, what all should be changed?

C-KYC will be required for_____.

In the case of a minor, KYC will be of_____.

Who can take tax breaks in joint MF in ELSS scheme?

What is generally true regarding retirement planning?

Which financial instrument does not have fixed maturity?

Risk appetite of client has positive relationship , except _____.

Which asset allocation need Seasoned Investor?

What is true regarding Insurable Interest?

Annuity is an example of____.

What should a mutual fund investor look for ____.

Infrastructure funds are alternative funds of ______.

Which is the lowest lock-in period for tax gain?

Which sector will not be performing when economy is in upturn?

What is not there in Satellite Portfolio?

Which bias leads to in-action?

What is Aggregate Demand?

Securities are issued to a select set of investors who can bid and purchase the securities on offer. What type of securities issue is this?

_____ measures the systematic risk in a stock by measuring the volatility in the price of a stock relative to the overall market.

Mr. B came to India on 5th April 2019 and leaves India on 5th March 2020. Will he be considered a resident of India?

_____ Securities are issued to existing investors as on a specific cut-off date & get an allotment of additional shares without any consideration.

Since the same amount is being invested in each installment investors buy more units when the price is low and fewer units when the price is high. Over time the average cost of acquisition per unit comes down. This is called ____.

_____ is the apex regulator of the securities market and also responsible for its orderly growth and protection of the investor’s interests.

Mr. B wants to apply for the IPO of public company X Ltd. For its payment on an allotment which measure is used in current times?

An investor in general assumes to be Risk Averse. True or False?

_____ is the action of bringing a portfolio of investments that have deviated away from the targeted asset allocation back into its original allocation and to ensure that the allocation is aligned to the investor’s needs.

Which market provides an exit option for promoters, private and inside investors who subscribed to Initial Capital?

MR. A has analyzed the fundamentals and technicals of HDS Ltd. And found that the company has a high growth prospect in near future thus, wants to go long on it but he does not have enough funds for it so his broker gave him the facility to partly fund the investment. What is this facility called?

Higher the turnover in a stock, better is the liquidity.

Market P/E of F Ltd. is 25.6 and industry P/E is 28, identify whether the share is overpriced or underpriced?

_____ risk incurred due to changes in the exchange rate of domestic currency relative to foreign currency.

Which of the following has a longest tenure of maturity?

Which of the following is not an indication of indebtedness?

Diversification provides the benefit of elimination of risk i.e. making a risk free portfolio.

Asset allocation must be done in accordance to the age profile of the client.

Every mutual fund distributor is therefore required to apply for _____ simultaneously along with the application for registration of the ARN code.

Mr. M has made a long-term capital gain on the sale of land of Rs. 50,000 and a loss on shares purchase on 1 Jan, 2019 and sold the shares on 11 Nov 2019. Is the loss allowed to set off against gain?

Sara is 25 years old and wants to create a corpus for retirement, she will retire at 60 years and want inflation-adjusted per month expense. In which of the following security she should invest?

Mr. Agarwal prefers to do nothing despite information and analysis favoring a particular action that in the mind of the investor may lead to a loss. Holding on to losing stocks avoiding riskier asset classes like equity when there is a lot of information and discussion going around on market volatility are manifestations of which bias?

Mr. Sharma has a portfolio consisting of the following Stock: WEIGHT: Stock A : 52% | Stock B : 48% | Correlation between stock is 1. Can the diversification benefit be availed?

_____ refers to the change in the value of all goods in the basket excludes food and fuel items because the prices of these items tend to be more volatile.

Mr. M invested in stock of A Ltd. through the stock exchange and the company declared a dividend of Rs. 5 per share, but the dividend was not credited to his account. To whom he should complain?

Mr. B recommended stock of Ace Ltd. to his clients after analyzing the balance sheet, profit & loss statement, economic factor, industry factor, etc. What method of analysis does it use?

Opening a Basic Savings Bank Deposit Account (BSBDA) does not require a PAN card.

Mr. B has taken an endowment policy with a sum assured of Rs. 150,000 and pay a premium of Rs. 36,785 for it is the expense allowed as a deduction under income tax.

Does the KYC norms apply for opening an account of NPS?

Mr. Vihan needs funds for his son’s education after 3 years of Rs. 100,000. He is ready to take only the minimal level of risks. What would be the appropriate investment option for him?

Maximum amount of investment limit in National Saving Certificate is _____.

_____ Strategy is need-based and _____ Strategy is view based.

_____ insurance is a pure risk cover product. It pays a benefit only if the policyholder dies during the period for which one is insured.

Using the current market price to estimate the value of an investment is called _____.

_____ is an act to prevent money laundering and to provide for confiscation of property derived from or involved in money laundering and for related matters.

No POA for a minor’s transactions.

Mr. M wants Rs. 500,000 after 2 years what amount he should invest monthly @10% p.a. to achieve the target?

_____ refers to the probability that borrowers will not be able to meet their commitment on paying interest and principal as scheduled.

_____ is an approach to understanding the risk appetite of investors.

Which of the following is a suitable asset allocation for a young call center employee with no dependents?

Securities are issued to the members of the public, and anyone eligible to invest can participate in the issue, what type of issue is this?

Interest rate decreases bond price increases.

Securities are issued to existing investors as on a specific cut-off date enabling them to buy more securities at a specific price ____.

Risk capacity means _____.

If the final issue price is not known at the time of filing then an indicative price band for the offer is provided in the prospectus. This document is called ____ as it does not have a final price.

Calculate the beta of stock A if the covariance between stock A and nifty is .06 the standard deviation of the stock market is 18%.

ARN means ____.

_____ refers to all payments due to lenders whether as principal or interest.

The process of dividing the portfolio among different assets so that the overall portfolio’s return is protected from the effect of a fall in one or few assets is called _____.

The order can be a _____ where the investor specifies the maximum price at which they are willing to buy or the minimum price at which they are willing to sell.

Investors tend to choose lower return with certainty over a larger return with risk. This is called as _____.

Settlement System in India:

Financing risky or volatile investment propositions with debt may entail high risk.

Mr. S has taken loan of RS 250,000 @9% p.a. for 5 years. Calculate the EMI.

In the case of mutual funds, shares and bonds, demat account, post office, savings bank accounts, and most company deposits a purchase application can be made by a maximum of _____ joint holders.

UCIC stands for:

_____ is an organization of intermediaries which represents a particular segment of the securities market and which is duly recognized by SEBI.

_____ refers to all payments due to lenders.

Diversification does not eliminate risk or guarantee a return; it reduces the volatility in the returns of a portfolio.

Solvency ratio + leverage ratio =1.

_____ is an instrument by which a person may formally authorize another person to act on his behalf or as his agent on all matters or for a specific transaction or particular types of transactions.

Each fund describes the asset classes it would invest in their proportions and how it would construct its portfolio. This indicative asset allocation is pre-decided at the time of launch and is available in the _____.

Which of the following are function of RBI?

Positive relationship of an EMI is with except:

These are the risk parameters in isolation except:

Inflation risk is minimum in _____.

Re-investment risk is minimum in _____.

The market where investors trade among themselves is _____.

Foreign exchange management can be done through _____.

In Forex derivatives higher the expiry:

Which is an option to sell?

Which demands highest time of the investor?

The Primary Markets are regulated by:

For a scheme to be defined as an equity fund it must have a minimum ____ % investment in Indian equities.

An efficient asset allocation is one that includes asset classes that have _____ correlation.

Who decides the price at which the shares will be allotted to investors in a public issue?

ELSS has a lock-in period of _____.

_____ is taking a loan at a lower interest rate to repay the high-cost debt.

_____ strategy can be defined as an active management portfolio strategy that rebalances the percentage of assets held in various categories in order to take advantage of market pricing.

_____ is an application for subscription to an issue containing an authorization to the investors’ bank to block the application money in the bank account and release funds only on allotment.

Mr. A wants Rs. 45,000 current cost for holiday after 2 years cost escalation at 6%. Calculate the amount needed?

Which of the following is a suitable asset allocation for a single-income family with grown-up children who are yet to settle down?

Calculate the Real rate of return : Rate of return: 10% p.a. compounded quarterly inflation @ 6%.

_____ in an IPO is a short-term investing practice of using borrowed funds to invest with the expectation of making immediate short-term gains from the shares being listed at a premium to the issue price.

An investor owns real estate worth Rs. 40 lakhs, investments, and bank balances valued at Rs. 15 lakhs, and Rs.10 lakhs are lying in the provident fund account. The real estate was bought with a loan of Rs. 20 lakhs, of which Rs. 15 lakhs is currently outstanding. The investor also has credit card dues of Rs. 1 lakhs and a loan of Rs. 1 lakh from a friend. What is the leverage ratio in this case?

_____ is given to limit the loss in a buy or sell trade by specifying a price to execute an opposite trade.

_____ measures the systematic risk in a stock by measuring the volatility in the price of a stock relative to the overall market.

PAN stands for:

_____ means having a combination of investments in a portfolio in such a way that a fall in the value on one or a few will be made up by other investments that are doing well.

Mr. A invested Rs. 150,000 today for 10 years in stock of Z Ltd. and the expected rate of return is 6% per half-yearly. Calculate the amount he will get after 10 years.

_____ involves disguising financial assets so that they can be used without detection of the illegal activity that produced them.

The _____ maintains the KYC records of an investor centrally.

Since the same amount is being invested in each installment, investors buy more units when the price is low and fewer units when the price is high. Over time, the average cost of acquisition per unit comes down. This is called _____.

The “Know Your Customer” process has to be undergone by all investors in compliance with the regulations of _____.

_____ risk is specific to individual securities or a small class of investment and is diversifiable.

_____ is the prescribed form to apply for a PAN.

Contributions to the NPS account to the extent of _____ do not require PAN details to be provided.

Risk Tolerance means _____.

Savings is limited to the money that is retained in the savings bank account.

Higher the leverage, more _____ it is for the individual’s financial situation.

_____ risk arises from the factors that affect the operation of business.

Any person, who has a grievance against a listed company (e.g. non-payment of dividend or issues related to transfer of securities) or against any market intermediary, can file a complaint using _____.

A _____ proportion of financial assets is preferred especially as goals are closer to realisation and there is a need for income or funds to meet the goals.

Loan taken to buy financial assets is called _____.

Who creates an Option?

The guardian of a minor whose income is being assessed here Guardian will be _____.

Which insurance policy doesn’t have a death benefit?

Mr. Rajeev (age 50 years) earns Rs. 500,000 per annum now. He wants to retire at the age of 60 years with 50% of his income as post retirement income. His life expectancy is 80 and salary will increase at the rate of 8%. With the discount rate of 10% what will be the retirement corpus required as per replacement ratio method?