n NISM Certifications
XV NISM Series XV
Medium

Which factor is most likely to increase purchases of premium products over cheaper alternatives?

Practice question from NISM XV Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Recession

  2. B

    Inflation

  3. Increase in income levels

    Correct answer

  4. D

    Population growth

Why this is the answer

Higher disposable income allows consumers to buy premium products. Recession and inflation typically constrain spending.

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