Q 1. Apart from capital appreciation, what other source of income can real estate generate?

a) Dividends

b) Interest

c) Rent

d) Capital gains

Report

Q 2. Compared to equity, how are bonds generally perceived in terms of risk?

a) Bonds are considered riskier

b) Bonds are considered equally risky

c) Bonds are considered safer

d) Bonds are considered highly volatile

Report

Q 3. How can individuals prepare for unforeseen events that may impact financial goals?

a) By investing solely in high-risk, high-return options

b) By creating an emergency fund using savings and investment products

c) By ignoring the possibility of negative outcomes

d) By avoiding insurance policies altogether

Report

Q 4. How can investors gain exposure to international assets?

a) Investing in local government bonds

b) Buying international mutual funds or ETFs

c) Opening fixed deposit accounts in local banks

d) Purchasing shares of multinational corporations

Report

Q 5. How do equity shareholders potentially benefit from company profits?

a) By receiving fixed interest payments

b) By receiving capital appreciation only

c) By receiving dividends

d) By receiving royalties

Report

Q 6. How do government bonds differ from other bonds in terms of interest rates?

a) Government bonds offer higher interest rates

b) Government bonds offer lower interest rates

c) Government bonds offer variable interest rates

d) Government bonds offer no interest payments

Report

Q 7. How often does SEBI mandate rebalancing for mutual fund schemes in the event of passive breaches?

a) Every 15 business days

b) Every 30 business days

c) Every 45 business days

d) Every 90 business days

Report

Q 8. How do investments in equity and bonds differ in terms of ownership?

a) Equity investors are lenders, while bond investors are owners

b) Equity investors are owners, while bond investors are lenders

c) Both equity and bond investors are owners

d) Equity investors are shareholders, while bond investors are debtholders

Report

Q 9. How do share prices typically behave over long periods of time?

a) They fluctuate without regard to business fundamentals

b) They remain constant

c) They decrease steadily

d) They are influenced by external factors only

Report

Q 10. How do stable companies with market leadership affect credit risk?

a) They increase credit risk due to their high debt levels

b) They reduce credit risk due to their strong financial stability

c) They have no impact on credit risk

d) They only affect credit risk for short-term loans

Report

Q 11. How does classifying goals based on timelines aid in investment planning?

a) It guarantees high returns on investments

b) It minimizes investment risks

c) It maximizes short-term gains

d) It ensures alignment with market trends

Report

Q 12. How does diversification help manage investment risks?

a) By eliminating all investment risks

b) By concentrating investment in a single asset class

c) By reducing the impact of losses from individual investments

d) By minimizing the need for market knowledge

Report

Q 13. How does diversification impact security-specific risk?

a) It eliminates security-specific risk entirely

b) It reduces security-specific risk

c) It increases security-specific risk

d) It has no impact on security-specific risk

Report

Q 14. How does inflation affect the future value of money invested at a nominal interest rate?

a) It decreases the future value

b) It increases the future value

c) It has no effect on the future value

d) It depends on the rate of inflation

Report

Q 15. How does interest rate risk affect bond investors who sell bonds before maturity?

a) They experience no impact on returns

b) They receive higher returns

c) They face lower returns

d) They benefit from lower inflation rates

Report

Q 16. How does interest rate risk affect bond prices compared to other factors?

a) It has no impact on bond prices

b) It has a smaller impact on bond prices

c) It has a larger impact on bond prices

d) It leads to increased liquidity in the bond market

Report

Q 17. How does interest rate risk affect bond prices?

a) Higher interest rates lead to higher bond prices

b) Lower interest rates lead to higher bond prices

c) Higher interest rates lead to lower bond prices

d) Interest rate changes do not affect bond prices

Report

Q 18. How does interest rate risk impact the attractiveness of existing bonds?

a) It increases their attractiveness

b) It decreases their attractiveness

c) It has no impact on their attractiveness

d) It makes them more volatile

Report

Q 19. How does market risk differ from other types of risk?

a) Market risk affects only individual securities

b) Market risk is specific to a particular industry

c) Market risk can be eliminated through diversification

d) Market risk cannot be reduced through diversification

Report

Q 20. How should investments in real estate be accounted for regarding transaction costs?

a) Transaction costs should be included in the investment value

b) Transaction costs should be ignored

c) Transaction costs should be deducted from the investment value

d) Transaction costs should be calculated annually

Report

Q 21. In the comparison between managing investments independently and outsourcing to mutual funds, what aspect of time should be considered?

a) Financial constraints

b) Emotional attachment to finances

c) Value of time spent on self-management

d) None of the above

Report

Q 22. In the context of rebalancing, what benefit does buying low and selling high offer to investors?

a) It increases investment costs

b) It reduces investment risks

c) It maximizes returns

d) It restores the target asset allocation

Report

Q 23. In what scenario might an investor realize capital gains or losses with bonds?

a) When purchasing newly issued bonds

b) When holding bonds until maturity

c) When investing in government bonds

d) When receiving interest payments

Report

Q 24. In which scenario is asset allocation likely to be most important?

a) Shalini's pursuit of a career in space science

b) Rabindra's retirement planning

c) Surinder's relocation to a new city

d) Mr. Gupta's exploration of mutual fund schemes

Report

Q 25. What action should an investor take if one asset class in their portfolio has significantly outperformed another?

a) Increase investment in the outperforming asset class

b) Reduce investment in the outperforming asset class

c) Do nothing, as the outperformance may continue

d) Seek advice from a financial advisor before taking any action

Report

NISM Series V A Mutual Fund Distributors Exam Series

NISM Series V A Mutual Fund Distributors Exam Series

Q 1. Apart from capital appreciation, what other source of income can real estate generate?

Q 2. Compared to equity, how are bonds generally perceived in terms of risk?

Q 3. How can individuals prepare for unforeseen events that may impact financial goals?

Q 4. How can investors gain exposure to international assets?

Q 5. How do equity shareholders potentially benefit from company profits?

Q 6. How do government bonds differ from other bonds in terms of interest rates?

Q 7. How often does SEBI mandate rebalancing for mutual fund schemes in the event of passive breaches?

Q 8. How do investments in equity and bonds differ in terms of ownership?

Q 9. How do share prices typically behave over long periods of time?

Q 10. How do stable companies with market leadership affect credit risk?

Q 11. How does classifying goals based on timelines aid in investment planning?

Q 12. How does diversification help manage investment risks?

Q 13. How does diversification impact security-specific risk?

Q 14. How does inflation affect the future value of money invested at a nominal interest rate?

Q 15. How does interest rate risk affect bond investors who sell bonds before maturity?

Q 16. How does interest rate risk affect bond prices compared to other factors?

Q 17. How does interest rate risk affect bond prices?

Q 18. How does interest rate risk impact the attractiveness of existing bonds?

Q 19. How does market risk differ from other types of risk?

Q 20. How should investments in real estate be accounted for regarding transaction costs?

Q 21. In the comparison between managing investments independently and outsourcing to mutual funds, what aspect of time should be considered?

Q 22. In the context of rebalancing, what benefit does buying low and selling high offer to investors?

Q 23. In what scenario might an investor realize capital gains or losses with bonds?

Q 24. In which scenario is asset allocation likely to be most important?

Q 25. What action should an investor take if one asset class in their portfolio has significantly outperformed another?

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