NISM V-B Investment Landscape — Practice Questions
Practice the Investment Landscape chapter of NISM Series V-B: why people save and invest, the difference between the two, risk and return, inflation and compounding, and the investment options open to an Indian household.
51 questions on Investment Landscape in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- Savings vs investment
- Risk, return and inflation
- Power of compounding
- Investment options for households
Free sample questions
1. Risk appetite of an investor is higher when life expectancy is __________ .
- A. longer ✅
- B. shorter
- C. No effect
- D. None of the above
Answer: A — longer
Why: Risk appetite refers to an investor’s willingness to take risks in their investments. Life expectancy plays a crucial role in determining risk tolerance because: Longer life expectancy - More time to recover from market fluctuations - Higher risk appetite Shorter life expectancy - Need for stable and secure returns - Lower risk appetite
💡 LONGER life expectancy -> more time to recover -> HIGHER risk appetite.
2. A model portfolio consisting of 15% diversified equity index scheme; 10% gold ETF, 30% gilt fund, 30% diversified debt fund, 15% liquid schemes is ideal for ___________ .
- A. Couple in their seventies, with no immediate family support ✅
- B. Single income family with grown up children who are yet to settle down
- C. Young married single income family with two school going kids
- D. Young call centre / BPO employee with no dependents
Answer: A — Couple in their seventies, with no immediate family support
Why: This portfolio is ideal for senior people as it has very high allocation to safe fund like GIlt, Debt and Gold.
💡 Retirees (70s) -> SAFETY-heavy mix: mostly gilt/debt/gold, tiny equity.
3. Financial planning is basically ________ .
- A. correct portfolio management
- B. planned and systematic approach to provide for the financial goals ✅
- C. astute diversification by investing in equities, gold, debt etc
- D. All of the above
Answer: B — planned and systematic approach to provide for the financial goals
Why: Financial planning is a planned and systematic approach to provide for the financial goals that will help people realise their needs and aspirations, and be happy.
💡 Financial planning = a planned, SYSTEMATIC approach to provide for financial GOALS.
Practise all 51 Investment Landscape questions
Plus the full 369-question NISM V-B bank and real-feel mock exams.