n NISM Certifications
X NISM Series X
Medium

________ is a cash flow from an investment that goes on forever.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Annuity Due

  2. Perpetuity

    Correct answer

  3. C

    Ordinary Annuity

  4. D

    Variable Annuity

Why this is the answer

A perpetuity provides cash flows indefinitely, such as perpetual bonds or pensions.

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