n NISM Certifications
X NISM Series X
Medium

A trust is created for the benefit of a beneficiary, who is the person for whom the trust assets are held and managed according to the trust's terms.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Beneficiary

    Correct answer

  2. B

    Legal heir

  3. C

    Legatee

  4. D

    Nominee

Why this is the answer

The beneficiary is the individual or entity for whose benefit the trust is established, and to whom the trust assets are ultimately transferred or managed.

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