NISM Series X-B Investment Adviser (Level 2) Cert. Mock Test - 1

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NISM Series X-B Investment Adviser (Level 2) Cert. Mock Test – 1

1 / 50

Which of these methods is used to assess the retirement needs?

a) Income Estimation Method

b) Replacement Ratio Method

c) Income Protection Method

d) Income Assessment Method

2 / 50

Which of the following individuals is not considered a Class I heir under the Hindu Succession Act?

a) Father

b) Son of a Predeceased Daughter

c) Mother

d) None of the above

3 / 50

XYZ Steel Ltd. is a company incorporated in India under the Companies Act on 20th September 2017. The Chairman, MD, and Directors of this company have been living in New Jersey (USA) for the last six years. For the last few years, they come to India once in a year to oversee the operations of the company. In 2023, they came to India on 10th of June and went back to the USA on the 20th of August. For the last ten years, they were resident of India for three years. What is the residential status of XYZ Steel Ltd.?

a) Resident

b) Ordinarily resident

c) Not ordinarily resident

d) Non resident

4 / 50

_______ is a passively managed fund.

a) Index Fund

b) Income Fund

c) Sector Fund

d) Thematic Fund

5 / 50

Who among the following individuals is required to meet the registration obligation according to SEBI (Investment Advisers) Regulations, 2013:

a) A Chartered Accountant practicing his profession

b) An IFA who charges advisory fees to investors

6 / 50

Overseas travel insurance covers ________.

a) Delay in baggage clearance

b) Financial assistance in case of emergency as mentioned in the policy

c) Medical assistance as mentioned in the policy

d) All of the above

7 / 50

Identify the tool of estate planning which takes effect in the lifetime of the individual ?

a) Will

b) Nomination

c) Gift

d) All of the above

8 / 50

_________ helps the investors to assess risk.

a) Risk Journal

b) Systematic Investment Plan

c) Systematic Withdrawal Plan

d) Risk Profiling

9 / 50

A borrower of securities has to deposit which of these amounts on an upfront basis?

a) Extreme loss margin

b) Value-at-risk margin

c) Lending fee

d) All of the above

10 / 50

The face value of a company’s share is Rs 5, with a current market price of Rs 60. The EPS stands at Rs 12, and the company declares a dividend of 20%. What is the dividend yield?

a) 12%

b) 5%

c) 2.41%

d) 1.67%

11 / 50

When an NRI retuns to India and becomes a resident Indian, What has to be done withrespect to Demat Holdings?

a) Change the status to resident and continue same account

b) Change status and Open a New demat account and transfer holdings

c) Operate the existing demat account

d) Continue the same account for existing investments and for all future investments a new demat account is opened

12 / 50

An investor buys 100 shares of a stock at Rs.200 per share on 60% margin. The stock goes to Rs.220. Ignoring all costs of transacting, the percentage return on investment is:

a) 45.45%

b) 16.67%

c) 18%

d) 10%

13 / 50

In case of NPS which of the following is True?

a) Exit before turning 60 years is possible by withdrawing 40 per cent of the accumulated savings and compulsorily buying an annuity with the remaining 60 per cent.

b) Exit before turning 60 years is possible by withdrawing 60 per cent of the accumulated savings and compulsorily buying an annuity with the remaining 40 per cent.

c) Exit before turning 60 years is possible by withdrawing 20 per cent of the accumulated savings and compulsorily buying an annuity with the remaining 80 per cent.

d) Exit before turning 60 years is possible by withdrawing 80 per cent of the accumulated savings and compulsorily buying an annuity with the remaining 20 per cent.

14 / 50

The benefits of diversification in a portfolio is seen in the form of __________.

a) Enhancing risk adjusted returns

b) Maximising returns

c) Guaranteeing returns

d) Eliminating risk

15 / 50

Annuity received from insurance companies is taxable as:

a) Profits in lieu of Salary

b) income from salary

c) Income from Other Sources

d) None of the above

16 / 50

Daniel Kahneman and Amos Tversky (1979) introduced __________.

a) Capital market theory

b) Prospect theory

c) mental accounting theory

d) Modern portfolio theory

17 / 50

The losses can be carried forward for ___________ only in case of speculative business losses.

a) 8 years

b) 5 years

c) 4 years

d) 7 years

18 / 50

A bond pays 10% interest per annum. The inflation rate for that year is 5%. What is the real return?

a) 5%

b) 4.76%

c) 4.56%

d) 15%

19 / 50

An investor who seeks a high level of return and is willing to bear the risks of such investments is likely to be recommended:

a) Aggressive portfolio

b) Moderate portfolio

c) Conservative portfolio

d) Low Beta Portfolio

20 / 50

The maximum limit of investment is ________ for senior citizens’ saving scheme.

a) Rs. 10 lakhs

b) Rs. 20 lakhs

c) Rs. 15 lakhs

d) Rs. 25 lakhs

21 / 50

Rishi wants to know if he can withdraw from his Employees’ Provident Fund to buy a larger house. He has been in service for 12 years.

a) No, as he has not been a member of the fund for more than 10 years

b) Yes, as he has been a member of the fund for more than 3 years

c) Yes, as he has been a member of the fund for more than 5 years, and provided he purchases the house in his own name or in his wife's name

d) Yes, as he has been a member of the fund for more than 5 years, provided he purchases the house in his own name or jointly with his wife

22 / 50

Loss from business or profession cannot be set off against

a) Salary

b) Capital Gains

c) Profit from Business or Profession

d) Loss from House Property

23 / 50

The regulations mandate that at least _________ of the accumulated corpus in the NPS account must be utilized to purchase an annuity upon retirement.

a) 60%

b) 30%

c) 50%

d) 40%

24 / 50

Which of the following represents a financial goal?

a) A sizable sum needed to buy a new car in two years time

b) Rs.5 lakhs needed after two years to pay childs tuition fees

c) Rs.6 lakhs required for sisters wedding

d) Rs. 10 lakhs needed for purchasing a flat

25 / 50

What happens when you choose a lower credit-rated debt instrument for the sake of higher interest income?

a) Higher default risk

b) Higher ability to service debt

c) Lower liquidity risk

d) Higher income security

26 / 50

Under PMVVY, the income is guaranteed for the period of ___________.

a) 5 years

b) M20 years

c) 15 years

d) 10 years

27 / 50

Short-term capital loss can be set off against __________.

a) Cannot be set off against any other gain

b) Short term capital gain

c) Long term capital gain

d) Both 1 and 2 are True

28 / 50

Investing in long-term debt funds is sensible in a declining interest rate scenario. State True or False.

a) True

b) False

29 / 50

Dinakaran, who is an NRI, purchased a house on 20th Jan 2013 and later sold the house to Shyam on 20th Dec 2014 at a profit of Rs. 400,000. What type of capital gain has Dinakaran incurred?

a) Short Term Capital Gain

b) Long Term Capital Gain

c) Income tax officer will decide in case of NRI

d) Medium Term gain

30 / 50

It is the responsibility of the securitization trust to deduct tax when distributing income to its investors under _______ of the Income Tax Act.

a) Section 164DBC

b) Section 124EAC

c) Section 194LBC

d) Section 154DDA

31 / 50

Ravi, who follows the Hindu religion, wants to find out which law decides how his father’s property will be shared if his father passes away without leaving a will.

a) Indian Contract Act

b) Hindu Succession Act, 2005

c) Transfer of Property Act

d) Indian Succession Act, 1925

32 / 50

What is accurate about a will among the options below?

a) A WILL has to be compulsorily registered

b) A WILL cannot be revoked by the testator before his death.

c) WILL will come into effect once the Testator registers it.

d) The WILL comes into effect only after the death of the testator.

33 / 50

Section 87A of the Income-tax Act offers a tax rebate of up to _______ to a resident individual if their total income in the previous year is less than Rs. 5,00,000.

a) Rs. 21,500

b) Rs. 25,500

c) Rs. 31,500

d) Rs. 12,500

34 / 50

What expenses are not covered by a Mediclaim policy?

a) Spectacles

b) Hearing aids

c) Lenses

d) All of the above

35 / 50

Section ______ of the Income-tax Act lists all types of income included in business income that are subject to taxation.

a) Section 28

b) Section 16

c) Section 32

d) Section 25

36 / 50

What is the basic need for a risk to be insurable among the following options?

a) Intentional loss

b) Loss should be fortuitous

c) Loss must be catastrophic

d) Non homogenous Exposure

37 / 50

Which section in the tax laws exempts agricultural income from taxation?

a) Section 10(2A)

b) Section 10(1)

c) Section 10(10D)

d) Section 10(5)

38 / 50

_______ refers to a trust that obtains debt or receivables using funds it raises through the issuance of securitized debt instruments.

a) Special purpose distinct entity

b) Non banking financial companies

c) Asset reconstruction companies

d) Asset management companies

39 / 50

Who gets the benefits of the Reverse Mortgage Scheme among the following?

a) Persons belonging to BPL Category

b) Persons belonging to Priority Sector

c) Senior Citizens

d) Government Employees

40 / 50

Profits earned from Infrastructure Bonds are exempt from taxes. State whether True or False.

a) True

b) False

41 / 50

What is accurate when it comes to the liquidation of a company?

a) All the liabilities are paid off first

b) Such distribution of assets not treated as transfer for capital gains

c) Remaining assets are distributed among the equity shareholders

d) All of these

42 / 50

An active portfolio management strategy that adjusts the proportion of assets held in different categories to capitalize on market fluctuations or robust market sectors is known as what?

a) Strategic

b) Fixed Asset Allocation Strategy

c) Tactical

d) None of the above

43 / 50

In the case of ULIP, insurers are required to furnish Benefit Illustrations presenting two interest rate scenarios: one at ______ and another at _______.

a) 4% and at 10%.

b) 4% and at 8%.

c) 6% and at 8%.

d) 6% and at 10%.

44 / 50

Raghuveer sold some units of a Debt Mutual Fund scheme. What is the amount of Security Transaction Tax he is required to pay?

a) 0.25%

b) 0.03%

c) 0.13%

d) NIL

45 / 50

Unlisted Zero Coupon Bonds are treated as a long-term capital asset if they are held for _____ months.

a) 12

b) 36

c) 32

d) 24

46 / 50

The principle of _____________ ensures that an insured does not gain an advantage by insuring with multiple insurers.

a) Co-insurance

b) Subrogation

c) Utmost Good Faith

d) Contribution

47 / 50

The limitation in the active choice of NPS is that the proportion invested in alternative investment products shall be a maximum of ________.

a) 10%

b) 12%

c) 8%

d) 5%

48 / 50

The premium for a ULIP is higher than that for a term policy with the same sum assured because ___________.

a) A portion of the premium is used for investment

b) The period of cover is shorter

c) The risk is higher

d) The pool of insured is smaller

49 / 50

In this scenario, where a Car Insurance Policy has a deductible of Rs. 1,000 and a co-pay of 10%, the insurance policy will pay _________.

a) Rs 40,000

b) Rs 35,000

c) Rs 39,000

d) Rs 35,100

50 / 50

The primary aim of the guaranteed insurability rider benefit is to provide the policyholder with the right to ___________.

a) cancel a health-based exclusion after a symptom-free period

b) include his parents under the policy

c) increase cover when a key life event occurs without any Medical Examination

d) maintain cover despite a fall in investment value

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NISM Series X-B Investment Adviser (Level 2) Cert. Mock Test - 1

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