n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is NOT a typical feature of 'Real Estate' as an asset class?

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

Options

  1. A

    It provides regular income through rentals

  2. It is highly liquid

    Correct answer

  3. C

    It can serve as a hedge against inflation

  4. D

    It involves significant transaction costs and illiquidity

Why this is the answer

Real estate is illiquid compared to other asset classes; liquidity can take time and depends on market conditions.

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