NISM Series 2A Mock Test 3: Free RTA Corporate Paper

How this mock is marked

• 50 questions, one mark each.
• 60 minutes on the clock. That is the real exam's pace: 120 minutes for 100 questions.
• A wrong answer loses nothing, so answer every question.
• You pass with 50% or more.
• Submit to see your score and the chapters to work on. Then check each right answer and why it is right.

What this paper covers

50 questions from 15 chapters. Each chapter gets a share that follows our question bank.

• Introduction to Securities: 3 questions.
• Characteristics of Equity Shares: 3 questions.
• Characteristics of Debt Securities: 4 questions.
• Characteristics of Other Securities: 3 questions.
• Basics of Mutual Funds: 3 questions.
• SEBI – Role and Regulations: 4 questions.
• Public Offer of Securities: 3 questions.
• Modes of allotment of shares other than Public Offers: 3 questions.
• Processes related to Public Offering of Shares: 4 questions.
• Roles and Responsibilities in a Public Issue: 3 questions.
• Depository Services: 3 questions.
• Processes Related to Depositories: 4 questions.
• Investor Interface with the R&T Agent: 3 questions.
• Secondary Market Transactions: 3 questions.
• Client Servicing: 4 questions.

By level: Beginner 15 · Intermediate 25 · Advanced 10.

Chapter split of Mock 3

How Mock 3 shares its questions between chapters and levels. This split belongs to this paper. The other mocks of this exam have their own.

• Introduction to Securities: Beginner 1 · Intermediate 2 · Advanced 0.
• Characteristics of Equity Shares: Beginner 1 · Intermediate 1 · Advanced 1.
• Characteristics of Debt Securities: Beginner 1 · Intermediate 2 · Advanced 1.
• Characteristics of Other Securities: Beginner 1 · Intermediate 2 · Advanced 0.
• Basics of Mutual Funds: Beginner 1 · Intermediate 1 · Advanced 1.
• SEBI – Role and Regulations: Beginner 1 · Intermediate 2 · Advanced 1.
• Public Offer of Securities: Beginner 1 · Intermediate 2 · Advanced 0.
• Modes of allotment of shares other than Public Offers: Beginner 1 · Intermediate 1 · Advanced 1.
• Processes related to Public Offering of Shares: Beginner 1 · Intermediate 2 · Advanced 1.
• Roles and Responsibilities in a Public Issue: Beginner 1 · Intermediate 2 · Advanced 0.
• Depository Services: Beginner 1 · Intermediate 1 · Advanced 1.
• Processes Related to Depositories: Beginner 1 · Intermediate 2 · Advanced 1.
• Investor Interface with the R&T Agent: Beginner 1 · Intermediate 2 · Advanced 0.
• Secondary Market Transactions: Beginner 1 · Intermediate 1 · Advanced 1.
• Client Servicing: Beginner 1 · Intermediate 2 · Advanced 1.

3 sample questions, with answers

These 3 questions are not in Mock 3, so reading them spoils nothing here. They come from Mock 2 of this exam. Each one shows the hint, the answer and why every wrong option is wrong.

1. Q1The best displayed buy price is ₹210 and the best displayed sell price is ₹212. What is the quoted bid-ask spread?

   • A

     Option A. ₹422

     Why it is wrong: ₹422 adds the two prices rather than finding their difference.

   • B

     Option B. ₹2 — Correct answer

   • C

     Option C. ₹211

     Why it is wrong: ₹211 is the midpoint of the two quotes.

   • D

     Option D. ₹4

     Why it is wrong: ₹4 doubles the actual quoted gap.

   Answer: B. The quoted bid-ask spread is ₹2. Calculation: ₹212 best sell price − ₹210 best buy price = ₹2. Remember: The bid-ask spread measures the gap between the best opposing prices.

   Hint, shown before you answer in practice mode: The spread is the gap between the two opposing quotes. Common mistake: Confusing the spread with the average of the buy and sell quotes.

   II-A-138mediumnumerical

   Study this unit

2. Q2A scheme has ₹30 lakh net assets and 1.5 lakh units. It redeems 30,000 units at current NAV without costs. What remains?

   • A

     Option A. ₹36 lakh net assets and 1.8 lakh units

     Why it is wrong: Both totals increase as though this were a purchase rather than a redemption.

   • B

     Option B. ₹24 lakh net assets and 1.2 lakh units — Correct answer

   • C

     Option C. ₹30 lakh net assets and 1.2 lakh units

     Why it is wrong: ₹30 lakh ignores the cash paid to redeem the units.

   • D

     Option D. ₹24 lakh net assets and 1.5 lakh units

     Why it is wrong: 1.5 lakh units ignores cancellation of the redeemed units.

   Answer: B. The scheme retains ₹24 lakh net assets and 1.2 lakh units. NAV = ₹30 lakh ÷ 1.5 lakh = ₹20. Payout = 30,000 × ₹20 = ₹6 lakh. Remaining assets = ₹24 lakh and remaining units = 1.2 lakh. Remember: A redemption at NAV reduces both scheme assets and outstanding units.

   Hint, shown before you answer in practice mode: Redemption removes both the redeemed units and the cash paid for them. Common mistake: Removing only the units or only the cash.

   II-A-050hardnumerical

   Study this unit

3. Q3A bond has ₹2,000 face value and an 8% annual coupon paid half-yearly. What is each coupon payment?

   • A

     Option A. ₹800

     Why it is wrong: ₹800 misreads the coupon percentage by a factor of ten.

   • B

     Option B. ₹40

     Why it is wrong: ₹40 divides the annual coupon into four periods rather than two.

   • C

     Option C. ₹160

     Why it is wrong: ₹160 is the entire annual coupon, not one half-yearly payment.

   • D

     Option D. ₹80 — Correct answer

   Answer: D. Each half-yearly coupon is ₹80. Annual coupon = ₹2,000 × 8% = ₹160. Each payment = ₹160 ÷ 2 = ₹80. Remember: Coupon frequency changes payment size, not the stated annual coupon amount.

   Hint, shown before you answer in practice mode: The quoted annual rate must be allocated across the payment periods. Common mistake: Applying the annual rate to every half-year.

   II-A-024mediumnumerical

   Study this unit

Practise the chapters you missed

Your result shows which chapters need more work. Open a chapter on the NISM Series II-A practice page. Check each answer and read why it is right.