NISM Mock Test 100 Questions with Answers

🧪 NISM FULL TIMED MOCK TEST (100 QUESTIONS)

⏱️ Total Time: 120 Minutes

📝 Total Questions: 100 MCQs

🎯 Marks: 100 (1 mark each)

❌ Negative Marking: No


📌 INSTRUCTIONS

  • Attempt all questions
  • Choose only ONE correct option
  • Do not pause timer once started
  • Manage time carefully
  • Suggested pace: 1 question = ~1 minute

🕒 START YOUR EXAM NOW


PART A: SECURITIES MARKET BASICS (1–20)

  1. Primary market is used for:
    A) Trading shares
    B) Issuing new securities
    C) Forex trading
    D) Commodity trading
  2. SEBI regulates:
    A) Banking
    B) Securities market
    C) Insurance
    D) Tax system
  3. Demat account is used for:
    A) Cash storage
    B) Holding securities electronically
    C) Loan approval
    D) Tax filing
  4. Stock exchange is a:
    A) Bank
    B) Marketplace for securities
    C) Insurance company
    D) Government office
  5. IPO stands for:
    A) Internal Public Offer
    B) Initial Public Offering
    C) Index Price Option
    D) Investment Private Order
  6. T+1 settlement means:
    A) Trade + same day
    B) Trade + 1 day
    C) Trade + 10 days
    D) Trade + 1 month
  7. Face value is also called:
    A) Market value
    B) Nominal value
    C) Trading value
    D) Real value
  8. Secondary market refers to:
    A) New issue market
    B) Trading of existing securities
    C) Banking system
    D) Insurance market
  9. Depository in India includes:
    A) RBI
    B) NSDL/CDSL
    C) SEBI
    D) NSE
  10. SEBI established in:
    A) 1985
    B) 1988
    C) 1992
    D) 1995
  11. Bull market means:
    A) Falling prices
    B) Rising prices
    C) Stable prices
    D) Closed market
  12. Bear market means:
    A) Rising prices
    B) Falling prices
    C) No trading
    D) Fixed prices
  13. Liquidity means:
    A) Hard to sell
    B) Easy to convert into cash
    C) Fixed asset
    D) Loan
  14. Volatility means:
    A) Stability
    B) Price fluctuation
    C) Fixed return
    D) Dividend
  15. NSE stands for:
    A) National Stock Exchange
    B) New Securities Entity
    C) National Savings Exchange
    D) None
  16. BSE stands for:
    A) Bombay Stock Exchange
    B) Business Stock Exchange
    C) Bank Stock Exchange
    D) Basic Stock Entity
  17. Trading happens in:
    A) Primary market
    B) Secondary market
    C) Banking market
    D) Insurance market
  18. SEBI protects:
    A) Companies
    B) Investors
    C) Banks
    D) Government
  19. Insider trading is:
    A) Legal
    B) Illegal use of confidential info
    C) Mutual fund investing
    D) Banking
  20. Market regulator in India is:
    A) RBI
    B) SEBI
    C) NABARD
    D) IRDAI

PART B: MUTUAL FUNDS (21–40)

  1. Mutual fund is managed by:
    A) Investors
    B) AMC
    C) RBI
    D) SEBI
  2. NAV stands for:
    A) Net Asset Value
    B) Net Annual Value
    C) New Average Value
    D) None
  3. SIP means:
    A) Systematic Investment Plan
    B) Stock Income Policy
    C) Secure Investment Plan
    D) Simple Index Plan
  4. Equity funds invest in:
    A) Bonds
    B) Stocks
    C) FD
    D) Gold
  5. Debt funds invest in:
    A) Shares
    B) Bonds
    C) Crypto
    D) Real estate
  6. Exit load is charged on:
    A) Buying units
    B) Early redemption
    C) Dividend
    D) SIP start
  7. Open-ended funds allow:
    A) No redemption
    B) Continuous buying/selling
    C) Fixed maturity
    D) Government control
  8. Closed-ended funds:
    A) No trading
    B) Fixed maturity
    C) Daily SIP
    D) Unlimited entry
  9. KYC is required for:
    A) Driving
    B) Investments
    C) Passport
    D) Voting
  10. Risk depends on:
    A) AMC name
    B) Asset type
    C) Advertisement
    D) Broker
  11. Dividend means:
    A) Loan
    B) Profit distribution
    C) Tax
    D) Penalty
  12. Mutual fund returns depend on:
    A) Weather
    B) Market performance
    C) Government salary
    D) Bank loans
  13. SIP benefits include:
    A) Timing market perfectly
    B) Rupee cost averaging
    C) Free insurance
    D) Fixed profit
  14. AMC stands for:
    A) Asset Management Company
    B) Annual Market Control
    C) Asset Market Capital
    D) None
  15. Systematic risk is:
    A) Diversifiable
    B) Market-wide risk
    C) Company risk only
    D) Zero risk
  16. Debt funds are:
    A) High risk
    B) Low to moderate risk
    C) Zero risk
    D) Gambling
  17. Mutual fund units are priced by:
    A) RBI
    B) NAV
    C) SEBI
    D) Stock exchange
  18. Redemption means:
    A) Buying units
    B) Selling units
    C) Bonus shares
    D) IPO
  19. Fund manager role is:
    A) Government control
    B) Investment decision
    C) Banking
    D) Tax collection
  20. Mutual fund returns are:
    A) Guaranteed
    B) Market-linked
    C) Fixed
    D) Zero

PART C: DERIVATIVES (41–60)

  1. Derivatives derive value from:
    A) Bank deposits
    B) Underlying asset
    C) Cash only
    D) Fixed income
  2. Futures contract is:
    A) Optional
    B) Obligation
    C) Gift
    D) Loan
  3. Options give:
    A) Obligation
    B) Right but not obligation
    C) Fixed return
    D) Tax benefit
  4. Call option means:
    A) Right to sell
    B) Right to buy
    C) Loan
    D) Deposit
  5. Put option means:
    A) Right to buy
    B) Right to sell
    C) Insurance
    D) Dividend
  6. Margin money is used for:
    A) Tax
    B) Risk coverage
    C) Banking
    D) Salary
  7. Short selling means:
    A) Buying stock
    B) Selling borrowed stock
    C) Holding stock
    D) Bonus shares
  8. Hedging is used to:
    A) Increase risk
    B) Reduce risk
    C) Eliminate tax
    D) Increase loss
  9. Volatility indicates:
    A) Stability
    B) Price fluctuation
    C) Fixed return
    D) Dividend
  10. NSE is:
    A) National Stock Exchange
    B) New Securities Entity
    C) National Savings Entity
    D) None
  11. F&O stands for:
    A) Future & Options
    B) Fund & Order
    C) Fixed & Open
    D) Finance & Operations
  12. Leverage means:
    A) Low return
    B) Borrowed capital use
    C) No risk
    D) Fixed profit
  13. Derivatives market is:
    A) Low risk always
    B) High risk
    C) No trading
    D) Government only
  14. Futures price is based on:
    A) Random value
    B) Underlying asset
    C) Bank rate
    D) Tax
  15. Options premium is:
    A) Refundable always
    B) Cost of option
    C) Tax
    D) Brokerage only
  16. Strike price is:
    A) Market price
    B) Fixed execution price
    C) Dividend price
    D) NAV
  17. Derivatives are used for:
    A) Gambling only
    B) Hedging & speculation
    C) Banking
    D) Insurance
  18. Expiry date means:
    A) Start date
    B) End of contract
    C) Dividend date
    D) IPO date
  19. Derivatives trading is done in:
    A) Primary market
    B) Secondary market
    C) F&O segment
    D) Banking
  20. Risk in derivatives is:
    A) Zero
    B) High
    C) None
    D) Fixed

PART D: REGULATION (61–80)

  1. SEBI protects:
    A) Companies
    B) Investors
    C) Banks
    D) Government
  2. KYC stands for:
    A) Know Your Customer
    B) Keep Your Cash
    C) Known Yield Capital
    D) Key Yield Control
  3. AML means:
    A) Anti Money Laundering
    B) Asset Market Law
    C) Annual Market List
    D) Asset Money Loan
  4. Insider trading is:
    A) Legal
    B) Illegal use of insider info
    C) Mutual fund
    D) Banking
  5. Broker acts as:
    A) Regulator
    B) Intermediary
    C) Bank
    D) Government
  6. Risk disclosure is:
    A) Hidden info
    B) Investor awareness
    C) Profit guarantee
    D) Trading ban
  7. IPO allotment is regulated by:
    A) RBI
    B) SEBI rules
    C) Banks
    D) Brokers
  8. Grievance redressal means:
    A) Profit system
    B) Complaint resolution
    C) Trading system
    D) Investment plan
  9. Financial literacy means:
    A) Banking only
    B) Financial knowledge
    C) Insurance only
    D) Trading only
  10. SEBI full form relates to:
    A) Banking
    B) Securities regulation
    C) Insurance
    D) Tax
  11. Stock broker license is given by:
    A) RBI
    B) SEBI
    C) Government
    D) Banks
  12. Depository helps in:
    A) Cash handling
    B) Electronic securities holding
    C) Tax filing
    D) Insurance
  13. Market manipulation is:
    A) Legal
    B) Illegal
    C) Encouraged
    D) Required
  14. Arbitration is used for:
    A) Profit making
    B) Dispute resolution
    C) Trading
    D) Banking
  15. Investor protection fund is for:
    A) Brokers
    B) Investors
    C) Government
    D) Companies
  16. Stock exchange membership is:
    A) Free always
    B) Regulated
    C) Illegal
    D) Random
  17. Compliance means:
    A) Breaking rules
    B) Following rules
    C) Trading
    D) Investing
  18. Audit ensures:
    A) Fraud
    B) Transparency
    C) Loss
    D) Trading
  19. Risk profiling is used for:
    A) Banking
    B) Investor suitability
    C) Tax
    D) Insurance
  20. SEBI headquarters is in:
    A) Mumbai
    B) Delhi
    C) Kolkata
    D) Chennai

PART E: ADVANCED (81–100)

  1. Risk-return relation is:
    A) Direct
    B) Inverse
    C) None
    D) Random
  2. Diversification reduces:
    A) Profit
    B) Risk
    C) Tax
    D) Brokerage
  3. Inflation affects:
    A) Currency value
    B) Only banks
    C) Only stocks
    D) Only bonds
  4. Asset allocation means:
    A) Loan process
    B) Investment distribution
    C) Banking
    D) Insurance
  5. Beta measures:
    A) Return
    B) Risk
    C) Dividend
    D) Tax
  6. Systematic risk affects:
    A) One company
    B) Entire market
    C) Banks only
    D) Bonds only
  7. Efficient market means:
    A) No info
    B) All info reflected
    C) Fixed price
    D) No trading
  8. Liquidity means:
    A) Hard to sell
    B) Easy to convert cash
    C) Fixed asset
    D) Loan
  9. Bull market indicates:
    A) Downtrend
    B) Uptrend
    C) No trade
    D) Fixed market
  10. Bear market indicates:
    A) Uptrend
    B) Downtrend
    C) Stable
    D) Closed
  11. Opportunity cost means:
    A) Free gain
    B) Loss of alternative choice
    C) Profit only
    D) Dividend
  12. Compounding increases:
    A) Loss
    B) Returns over time
    C) Tax
    D) Risk only
  13. Time value of money means:
    A) Money same always
    B) Money value changes with time
    C) No value
    D) Fixed value
  14. Liquidity risk is:
    A) Easy selling
    B) Difficulty in selling
    C) No risk
    D) Profit
  15. Credit risk means:
    A) Loan default risk
    B) Market risk
    C) Inflation risk
    D) Currency risk
  16. Market risk is also called:
    A) Systematic risk
    B) Specific risk
    C) Zero risk
    D) Credit risk
  17. Arbitrage means:
    A) Loss
    B) Risk-free profit
    C) Tax
    D) Banking
  18. Portfolio means:
    A) Single stock
    B) Collection of investments
    C) Loan
    D) Bank account
  19. Financial planning means:
    A) Gambling
    B) Managing money goals
    C) Only saving
    D) Only spending
  20. Wealth creation needs:
    A) Luck only
    B) Discipline & investment
    C) Gambling
    D) Loans

NISM MOCK TEST – ANSWER KEY (1–100)

QAnsQAnsQAnsQAns
1B26B51A76B
2B27B52B77B
3B28B53B78B
4B29B54B79B
5B30B55B80A
6B31B56B81A
7B32B57B82B
8B33B58B83A
9B34A59C84B
10C35B60B85B
11B36B61B86B
12A37B62A87B
13B38B63A88B
14B39B64B89B
15A40B65B90B
16B41B66B91B
17B42B67B92B
18B43B68B93B
19B44B69B94B
20B45B70B95A
21B46B71B96A
22A47B72B97B
23A48B73B98B
24B49B74B99B
25B50A75B100B