n NISM Certifications
NSM General NISM
Medium

Most consumer loans and housing loans are structured as ________.

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Zero-coupon instrument

  2. B

    Coupon instrument

  3. C

    Consolidated Annuity (Consol)

  4. Annuity

    Correct answer

Why this is the answer

Annuity payments (EMIs) consist of periodic coupon + part principal, with equal spaced cash flows.

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