n NISM Certifications
XVII NISM Series XVII
Medium

What can happen if an investor chooses a lower credit rated debt security to get higher interest income?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The liquidity risks will be low

  2. The default risks will be high

    Correct answer

  3. C

    The ability to service debt by the borrower will be high

  4. D

    There will be higher income security

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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