n NISM Certifications
XVII NISM Series XVII
Medium

Under the bucket strategy, whenever funds are withdrawn from Bucket 1, it can be replenished from Bucket 2 as per a pre-fixed schedule, maintaining the structure of the strategy.

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

Options

  1. A

    Only when all the funds of Bucket 1 are withdrawn, it can be filled from Bucket 2

  2. B

    If there are trading gains in Bucket 2 or 3, it can be transferred to Bucket 1

  3. C

    When ever there is a withdrawal from Bucket 1, it can be refilled from Bucket 2 or 3

  4. It can be refilled from bucket 2 as per a pre-fixed schedule

    Correct answer

Why this is the answer

The bucket strategy involves systematic refilling of Bucket 1 from Bucket 2 based on a schedule to ensure liquidity.

Test yourself for real

Take a full NISM Series XVII mock test.

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