n NISM Certifications
XXI NISM Series XXI-A
Medium

The primary purpose of 'Loan Against Securities' is to:

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Borrow money by pledging securities as collateral

    Correct answer

  2. B

    Use securities to pay taxes

  3. C

    Convert securities into cash without any loan

  4. D

    Guarantee repayment of a loan without collateral

Why this is the answer

Loan against securities allows investors to borrow funds by pledging their securities as collateral, typically at lower interest rates.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.