n NISM Certifications
V-A NISM Series V-A
Medium

Which of the following have the highest credit risk?

Practice question from NISM Series V A - Short Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Money Market Fund

  2. Junk Bond

    Correct answer

  3. C

    G-Sec Fund

  4. D

    Income Fund

Why this is the answer

Junk bonds carry higher risk because they are issued by companies with financial instability. They may offer higher returns to compensate for the increased risk of default.

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