NISM XV Markets & Instruments — Practice Questions
Practice questions on securities markets and instruments for NISM Series XV — equity, debt, derivatives, mutual funds and market structure, with explanations.
63 questions on Markets & Instruments in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- Equity & debt instruments
- Derivatives basics
- Primary vs secondary markets
- Market participants
Free sample questions
1. Which mechanism primarily converts savings into investments?
- A. Banking system only
- B. Securities market ✅
- C. Insurance sector
- D. Tax system
Answer: B — Securities market
Why: The securities market channels household savings to businesses that need capital, converting idle savings into productive investment.
💡 Market = bridge from savers to users of capital.
2. A demat account is maintained with a —
- A. Stock exchange
- B. Depository (through a Depository Participant) ✅
- C. Merchant banker
- D. Clearing corporation
Answer: B — Depository (through a Depository Participant)
Why: Dematerialised holdings sit with a depository (NSDL/CDSL), accessed through a Depository Participant.
💡 Demat lives in the Depository, via a DP.
3. _________ may generate both capital appreciation and also recurring income.
- A. Bonds
- B. Gold
- C. Equities
- D. Both Bonds and Equities ✅
Answer: D — Both Bonds and Equities
Why: Equities (Stocks) can provide capital appreciation (if the stock price goes up) and recurring income in the form of dividends. Bonds provide recurring income through interest payments, and in some cases, capital appreciation if bond prices rise due to falling interest rates or favorable market conditions. So, both instruments have the potential to offer capital gains and income, depending on market behavior and investment strategy.
Practise all 63 Markets & Instruments questions
Plus the full 830-question NISM XV bank and real-feel mock exams.