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

Who should invest more in liquid funds: Mr. A, who has a small business, or Mr. B, who is a senior manager with a multinational company?

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

Options

  1. Mr. A

    Correct answer

  2. B

    Mr. B

Why this is the answer

Mr. A may need quick access to funds for his business, so he will allocate more to liquid funds. Mr. B, with a stable salary, doesn’t face liquidity issues and would likely invest less in liquid funds.

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