n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of these is NOT a significant risk while investing in Government of India Securities?

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Price Risk

  2. B

    Reinvestment Risk

  3. Credit Risk

    Correct answer

  4. D

    Liquidity Risk

Why this is the answer

Government securities are considered free of credit risk as they are sovereign-backed; the other risks are relevant.

Test yourself for real

Take a full NISM Series XXI-A mock test.

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