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Series XVII · Practice Set 1

NISM Series XVII: Retirement Adviser Certification — Practice Set 1 Practice Questions

Original practice set for NISM Series XVII: Retirement Adviser Certification. Every question below shows the correct answer and a full explanation, so you can read through this set as a study page or attempt it as a timed mock test.

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Practice questions

All 35 questions in Practice Set 1

Read each question, think through your answer, then expand it to check the correct option and explanation.

Retirement Planning Basics

Q1. Retirement planning is important because:

  1. A. To avoid paying taxes on income
  2. B. To ensure financial independence post-retirement — replacing employment income with investment income and pension when no longer working
  3. C. Only for government employees
  4. D. Only for people without family support
Show correct answer & explanation

Correct answer: B. To ensure financial independence post-retirement — replacing employment income with investment income and pension when no longer working

Retirement planning ensures financial independence after stopping work — accumulating enough corpus during working years to generate sufficient income (from investments, pensions, interest) to meet all expenses for the rest of one's life.
Retirement Planning Basics

Q2. The key challenge in retirement planning unique to India is:

  1. A. Availability of too many pension plans
  2. B. Lack of universal social security combined with increasing life expectancy — individuals must largely self-fund retirement unlike many Western countries with strong state pensions
  3. C. Too much government pension provision
  4. D. Lack of investment options
Show correct answer & explanation

Correct answer: B. Lack of universal social security combined with increasing life expectancy — individuals must largely self-fund retirement unlike many Western countries with strong state pensions

India lacks a universal state pension for most private sector workers. Combined with rising life expectancy (25-30 years post-retirement), individuals must largely self-fund retirement through personal savings and specific pension products like NPS, PPF, EPFO.
Retirement Planning Basics

Q3. Longevity risk in retirement planning is:

  1. A. Risk of dying too early
  2. B. Risk of outliving your retirement savings — living longer than expected means your corpus must last longer
  3. C. Risk of stock market crashes
  4. D. Risk of high inflation only
Show correct answer & explanation

Correct answer: B. Risk of outliving your retirement savings — living longer than expected means your corpus must last longer

Longevity risk is the risk of outliving your retirement corpus. With increasing life expectancy in India (life expectancy at 60 is now ~20+ years), retirement savings must last potentially 25-30 years. This requires adequate corpus and prudent drawdown strategies.
Retirement Planning Basics

Q4. Inflation risk in retirement is particularly severe because:

  1. A. Inflation affects only working-age people
  2. B. Retirees typically have fixed income sources while expenses keep rising with inflation — gradually eroding purchasing power over a long retirement horizon
  3. C. Interest rates always beat inflation
  4. D. Retirees have no expenses
Show correct answer & explanation

Correct answer: B. Retirees typically have fixed income sources while expenses keep rising with inflation — gradually eroding purchasing power over a long retirement horizon

Retirees on fixed income (pension, FD interest) face severe inflation risk because their income is fixed while expenses rise with inflation every year. Over 20-25 years, even modest 5-6% inflation can halve purchasing power.
National Pension System

Q5. NPS (National Pension System) is regulated by:

  1. A. SEBI
  2. B. RBI
  3. C. PFRDA (Pension Fund Regulatory and Development Authority)
  4. D. Ministry of Finance directly
Show correct answer & explanation

Correct answer: C. PFRDA (Pension Fund Regulatory and Development Authority)

NPS is regulated by PFRDA (Pension Fund Regulatory and Development Authority) established under the PFRDA Act, 2013. PFRDA oversees pension fund managers, PoP entities, the CRA (NSDL and KFintech), and the overall NPS structure.
National Pension System

Q6. NPS Tier 1 account is:

  1. A. A voluntary savings account with full liquidity
  2. B. The primary pension account with restricted withdrawals — mandatory for government employees, voluntary for others
  3. C. Available only to corporate employees
  4. D. Only for NRI investors
Show correct answer & explanation

Correct answer: B. The primary pension account with restricted withdrawals — mandatory for government employees, voluntary for others

NPS Tier 1 is the primary pension account with restricted withdrawal provisions. It is mandatory for central government employees (joining after 2004) and voluntary for others. It offers tax benefits and is locked till age 60 except for specific partial withdrawals.
National Pension System

Q7. NPS Tier 2 account is:

  1. A. Same as Tier 1 with extra benefits
  2. B. A voluntary savings account linked to Tier 1 — fully flexible withdrawals, no lock-in, but generally no tax benefits except for government employees
  3. C. Mandatory for all NPS subscribers
  4. D. An account only for senior citizens
Show correct answer & explanation

Correct answer: B. A voluntary savings account linked to Tier 1 — fully flexible withdrawals, no lock-in, but generally no tax benefits except for government employees

NPS Tier 2 is a voluntary savings account available only to those with a Tier 1 account. It has no withdrawal restrictions (money can be withdrawn anytime) and generally offers no tax benefits (except for government employees under specific conditions).
National Pension System

Q8. Under NPS, subscribers can choose their investment allocation through:

  1. A. Only Active Choice
  2. B. Only Auto Choice
  3. C. Both Active Choice and Auto Choice — subscriber selects at account opening and can switch periodically
  4. D. RBI determines the allocation
Show correct answer & explanation

Correct answer: C. Both Active Choice and Auto Choice — subscriber selects at account opening and can switch periodically

NPS offers two choices: (1) Active Choice — subscriber decides their own allocation across Equity (E), Corporate Bonds (C), and Government Securities (G) within PFRDA-defined limits. (2) Auto Choice — lifecycle-based automatic allocation that reduces equity as subscriber ages.
National Pension System

Q9. At NPS maturity (age 60), the subscriber must compulsorily use what percentage of the corpus to buy an annuity?

  1. A. 20%
  2. B. 40%
  3. C. 60%
  4. D. 80%
Show correct answer & explanation

Correct answer: B. 40%

At NPS exit at age 60, a subscriber must compulsorily use at least 40% of the accumulated corpus to purchase a lifetime annuity (regular pension) from a PFRDA-registered insurance company. The remaining 60% can be withdrawn as a lump sum (tax-free).
National Pension System

Q10. Tax benefits available on NPS contributions under Section 80CCD include:

  1. A. Only 80CCD(1) up to Rs. 1.5 lakh
  2. B. 80CCD(1) up to Rs. 1.5 lakh (within 80C limit) + 80CCD(1B) additional Rs. 50,000 over 80C limit + 80CCD(2) for employer contribution
  3. C. Only Rs. 50,000 per year
  4. D. No tax benefits — NPS is post-tax
Show correct answer & explanation

Correct answer: B. 80CCD(1) up to Rs. 1.5 lakh (within 80C limit) + 80CCD(1B) additional Rs. 50,000 over 80C limit + 80CCD(2) for employer contribution

NPS offers triple tax benefits: 80CCD(1) — up to 10% of salary (within Rs. 1.5 lakh overall 80C limit); 80CCD(1B) — additional Rs. 50,000 exclusive benefit (over and above 80C); 80CCD(2) — employer's NPS contribution (up to 10% of salary) as deduction.
National Pension System

Q11. PRAN in NPS stands for:

  1. A. Pension Retirement Account Number
  2. B. Permanent Retirement Account Number — unique 12-digit number assigned to each NPS subscriber for lifetime
  3. C. Provident Retirement Account Number
  4. D. Public Retirement Account Number
Show correct answer & explanation

Correct answer: B. Permanent Retirement Account Number — unique 12-digit number assigned to each NPS subscriber for lifetime

PRAN (Permanent Retirement Account Number) is a unique 12-digit number assigned to each NPS subscriber at the time of registration. It is portable — the same PRAN is retained even if the subscriber changes employers, locations, or PoP.
Pension Products

Q12. An annuity provides:

  1. A. A lump sum at maturity
  2. B. Regular periodic income (monthly, quarterly, or annually) for a specified period or lifetime — purchased from an insurance company
  3. C. Only death benefits
  4. D. Tax-free returns always
Show correct answer & explanation

Correct answer: B. Regular periodic income (monthly, quarterly, or annually) for a specified period or lifetime — purchased from an insurance company

An annuity is a contract with an insurance company where you pay a lump sum and in return receive regular income (monthly, quarterly, annual) for a specified period or for the rest of your life. It eliminates longevity risk by guaranteeing lifetime income.
Pension Products

Q13. A deferred annuity plan differs from an immediate annuity in that:

  1. A. They are identical products
  2. B. Deferred annuity has an accumulation phase (premiums paid over years) followed by an income phase — immediate annuity starts paying immediately after a single lump sum payment
  3. C. Deferred annuity has no investment component
  4. D. Immediate annuity gives higher returns
Show correct answer & explanation

Correct answer: B. Deferred annuity has an accumulation phase (premiums paid over years) followed by an income phase — immediate annuity starts paying immediately after a single lump sum payment

A deferred annuity has two phases: (1) Accumulation phase — premiums are paid and invested for growth, (2) Annuitisation phase — accumulated corpus is converted to regular income at a future date. An immediate annuity starts paying immediately after the lump sum purchase.
Social Security Schemes

Q14. EPF (Employee Provident Fund) is mandatory for:

  1. A. All self-employed individuals
  2. B. Employees drawing salary up to Rs. 15,000 in establishments with 20 or more employees — both employee and employer contribute 12% of basic salary each
  3. C. Only government employees
  4. D. Only corporate sector employees voluntarily
Show correct answer & explanation

Correct answer: B. Employees drawing salary up to Rs. 15,000 in establishments with 20 or more employees — both employee and employer contribute 12% of basic salary each

EPF is mandatory for employees earning basic salary up to Rs. 15,000 in organisations with 20+ employees. Both employee and employer contribute 12% of basic salary each. It builds a retirement corpus over a working lifetime with tax-free interest.
Social Security Schemes

Q15. PPF (Public Provident Fund) offers:

  1. A. Equity market-linked returns
  2. B. Government-backed guaranteed returns, EEE tax status (Exempt-Exempt-Exempt), and 15-year maturity — one of India's safest long-term savings instruments
  3. C. Returns linked to inflation only
  4. D. Variable returns based on bank FD rates
Show correct answer & explanation

Correct answer: B. Government-backed guaranteed returns, EEE tax status (Exempt-Exempt-Exempt), and 15-year maturity — one of India's safest long-term savings instruments

PPF is a government-backed savings scheme with fixed interest rates (reviewed quarterly), EEE tax status (investment, interest, and maturity proceeds all tax-exempt), 15-year maturity (extendable in 5-year blocks), and maximum Rs. 1.5 lakh investment per year.
Social Security Schemes

Q16. Atal Pension Yojana (APY) is designed for:

  1. A. Wealthy investors seeking guaranteed returns
  2. B. Unorganised sector workers — guaranteeing a fixed monthly pension (Rs. 1,000 to Rs. 5,000) at age 60 in return for contributions during working years
  3. C. Only government employees
  4. D. All Indian citizens above age 40
Show correct answer & explanation

Correct answer: B. Unorganised sector workers — guaranteeing a fixed monthly pension (Rs. 1,000 to Rs. 5,000) at age 60 in return for contributions during working years

APY targets unorganised sector workers (below age 40) who lack access to formal pension. It guarantees a fixed monthly pension of Rs. 1,000, 2,000, 3,000, 4,000 or Rs. 5,000 at age 60, based on the contribution amount and joining age.
Social Security Schemes

Q17. PM-SYM (Pradhan Mantri Shram Yogi Maan-Dhan) scheme provides:

  1. A. Home loans at low interest
  2. B. Monthly pension of Rs. 3,000 after age 60 for unorganised sector workers — government contributes equal amount to the worker's contribution
  3. C. Free medical treatment
  4. D. Educational loans for workers' children
Show correct answer & explanation

Correct answer: B. Monthly pension of Rs. 3,000 after age 60 for unorganised sector workers — government contributes equal amount to the worker's contribution

PM-SYM provides assured monthly pension of Rs. 3,000 after age 60 for unorganised sector workers with monthly income up to Rs. 15,000. The government co-contributes equal to the worker's contribution. Eligible workers are between 18-40 years of age.
Retirement Planning Basics

Q18. The 4% withdrawal rule in retirement planning suggests:

  1. A. Withdrawing 4% of income for savings
  2. B. Withdrawing approximately 4% of the retirement corpus annually is generally sustainable for a 25-30 year retirement without depleting the corpus
  3. C. Investing 4% of salary for retirement
  4. D. Keeping 4% in liquid funds
Show correct answer & explanation

Correct answer: B. Withdrawing approximately 4% of the retirement corpus annually is generally sustainable for a 25-30 year retirement without depleting the corpus

The 4% rule (Bengen Rule) suggests that withdrawing about 4% of the initial retirement corpus annually (adjusted for inflation) has historically sustained a 30-year retirement without exhausting the corpus — based on US market data. Actual rate depends on returns and inflation.
Retirement Investment Strategies

Q19. A Systematic Withdrawal Plan (SWP) from mutual funds in retirement provides:

  1. A. Guaranteed returns like FD
  2. B. Regular monthly cash flows from the invested mutual fund corpus — like a self-created pension — with tax efficiency on withdrawals compared to FD interest
  3. C. Only lump sum at the end
  4. D. Equity market exposure without any withdrawals
Show correct answer & explanation

Correct answer: B. Regular monthly cash flows from the invested mutual fund corpus — like a self-created pension — with tax efficiency on withdrawals compared to FD interest

SWP allows retirees to withdraw a fixed monthly amount from their mutual fund corpus. It is more tax-efficient than FD interest (long-term capital gains on equity funds are taxed at 10% above Rs. 1 lakh vs. FD interest taxed at slab rate).
National Pension System

Q20. NPS Point of Presence (PoP) serves as:

  1. A. A pension fund manager
  2. B. The first point of contact for NPS subscribers — handles registration, contributions, and subscriber service requests on behalf of PFRDA
  3. C. The annuity provider
  4. D. The CRA (Central Recordkeeping Agency)
Show correct answer & explanation

Correct answer: B. The first point of contact for NPS subscribers — handles registration, contributions, and subscriber service requests on behalf of PFRDA

PoP (Point of Presence) is the frontline intermediary for NPS. Banks, post offices, and financial institutions registered with PFRDA as PoPs handle subscriber registration, accept contributions, process transactions, and provide service — the 'branch' of NPS.
Retirement Planning Basics

Q21. The accumulation phase of retirement planning is:

  1. A. Post-retirement period
  2. B. The working years during which the individual saves and invests to build the retirement corpus
  3. C. Only the last 5 years before retirement
  4. D. The period of drawing pension
Show correct answer & explanation

Correct answer: B. The working years during which the individual saves and invests to build the retirement corpus

The accumulation phase spans the working years (typically 25-60 years of age) during which an individual systematically saves and invests to build the retirement corpus. Early and consistent savings with power of compounding are critical during this phase.
Retirement Planning Basics

Q22. The distribution phase of retirement planning is:

  1. A. The phase of distributing wealth to children
  2. B. The post-retirement period during which the accumulated corpus is drawn down to fund living expenses through various income strategies
  3. C. The phase of distributing investments across asset classes
  4. D. Only the first year of retirement
Show correct answer & explanation

Correct answer: B. The post-retirement period during which the accumulated corpus is drawn down to fund living expenses through various income strategies

The distribution (decumulation) phase begins at retirement. The accumulated corpus is converted into regular income through strategies like SWP from mutual funds, annuities, FD laddering, and dividend income — to sustain expenses throughout retirement.
Pension Products

Q23. Senior Citizens Savings Scheme (SCSS) is specifically designed for:

  1. A. All investors above 18
  2. B. Individuals above 60 years (or 55 for VRS retirees) — offering higher interest rates with quarterly payouts and Section 80C tax benefit up to Rs. 30 lakh investment
  3. C. Only government pensioners
  4. D. NPS subscribers only
Show correct answer & explanation

Correct answer: B. Individuals above 60 years (or 55 for VRS retirees) — offering higher interest rates with quarterly payouts and Section 80C tax benefit up to Rs. 30 lakh investment

SCSS is a government-backed savings scheme for senior citizens (60+), or VRS retirees (55+), offering higher fixed interest rates, quarterly income payouts, 5-year tenure (extendable by 3 years), and 80C tax benefit on investment up to Rs. 30 lakh.
Retirement Investment Strategies

Q24. Bucket strategy in retirement planning involves:

  1. A. Investing all money in equity
  2. B. Segregating retirement corpus into 3 buckets: short-term (liquid, 1-3 years expenses), medium-term (balanced, 4-7 years), and long-term (equity, 8+ years) — each bucket serves a different time horizon
  3. C. Investing in mutual fund buckets only
  4. D. Keeping all money in FDs
Show correct answer & explanation

Correct answer: B. Segregating retirement corpus into 3 buckets: short-term (liquid, 1-3 years expenses), medium-term (balanced, 4-7 years), and long-term (equity, 8+ years) — each bucket serves a different time horizon

The bucket strategy divides the retirement corpus into three time-based buckets: (1) Short-term bucket — 1-3 years of expenses in liquid/ultra-short funds (immediate needs), (2) Medium-term — 4-7 years in balanced funds, (3) Long-term — 8+ years in equity for growth.
National Pension System

Q25. CRA (Central Recordkeeping Agency) in NPS is responsible for:

  1. A. Managing pension fund investments
  2. B. Maintaining PRAN records, processing transactions, and generating account statements for all NPS subscribers — currently NSDL and KFintech
  3. C. Providing annuity to subscribers
  4. D. Setting NPS contribution rates
Show correct answer & explanation

Correct answer: B. Maintaining PRAN records, processing transactions, and generating account statements for all NPS subscribers — currently NSDL and KFintech

CRA is the back-office of NPS — it maintains all subscriber records (PRAN-wise), processes transactions received from PoPs, generates account statements, and reconciles data. NSDL (CRA) and KFintech serve as the two CRAs for NPS in India.
Social Security Schemes

Q26. Varishtha Pension Bima Yojana (VPBY) and Pradhan Mantri Vaya Vandana Yojana (PMVVY) are:

  1. A. Equity investment schemes for seniors
  2. B. Government-backed pension schemes for senior citizens (60+) operated through LIC — providing guaranteed pension (annuity) for a specified period in return for a lump sum investment
  3. C. Savings accounts for seniors
  4. D. Health insurance schemes for seniors
Show correct answer & explanation

Correct answer: B. Government-backed pension schemes for senior citizens (60+) operated through LIC — providing guaranteed pension (annuity) for a specified period in return for a lump sum investment

PMVVY (Pradhan Mantri Vaya Vandana Yojana) is a government-backed immediate annuity scheme operated through LIC for senior citizens (60+). It guarantees a minimum pension rate of return on a lump sum investment for 10 years, providing assured income.
Retirement Investment Strategies

Q27. Fixed Deposit (FD) laddering in retirement means:

  1. A. Investing all money in one 10-year FD
  2. B. Creating multiple FDs with different maturities — as each matures, it provides liquidity and the option to reinvest at prevailing rates, managing reinvestment risk
  3. C. Breaking FDs prematurely
  4. D. Investing in floating rate FDs only
Show correct answer & explanation

Correct answer: B. Creating multiple FDs with different maturities — as each matures, it provides liquidity and the option to reinvest at prevailing rates, managing reinvestment risk

FD laddering creates multiple FDs maturing at different intervals (1 year, 2 years, 3 years, etc.). As each FD matures, the investor receives funds for expenses or reinvests at current rates. This spreads reinvestment risk and ensures regular liquidity.
Regulatory Framework

Q28. A Retirement Adviser must be registered with:

  1. A. RBI
  2. B. PFRDA if providing NPS advice; SEBI if providing investment advice for other retirement products
  3. C. IRDAI for pension plan advice
  4. D. Only AMFI for retirement mutual funds
Show correct answer & explanation

Correct answer: B. PFRDA if providing NPS advice; SEBI if providing investment advice for other retirement products

Retirement advisers must be appropriately registered: PFRDA registration for providing NPS-specific advice (as Point of Presence entities or retirement advisers), and SEBI Investment Adviser registration for broader investment advisory services.
Retirement Planning Basics

Q29. Replacement ratio in retirement planning refers to:

  1. A. The ratio of savings to income
  2. B. Retirement income as a percentage of pre-retirement income — typically targeted at 70-80% to maintain similar lifestyle without work-related expenses
  3. C. The ratio of equity to debt in retirement portfolio
  4. D. The ratio of NPS to EPF contributions
Show correct answer & explanation

Correct answer: B. Retirement income as a percentage of pre-retirement income — typically targeted at 70-80% to maintain similar lifestyle without work-related expenses

The replacement ratio is the percentage of pre-retirement income that retirement income must replace. Commonly targeted at 70-80% (work-related expenses like commuting, clothing reduce, but healthcare costs increase). A higher replacement ratio requires a larger corpus.
Pension Products

Q30. Annuity with Return of Purchase Price (RoP) guarantees:

  1. A. Higher monthly pension than without RoP
  2. B. On the annuitant's death, the original purchase amount is returned to the nominee — provides lower monthly pension than life annuity without RoP
  3. C. Free healthcare during annuity period
  4. D. Increasing pension with inflation
Show correct answer & explanation

Correct answer: B. On the annuitant's death, the original purchase amount is returned to the nominee — provides lower monthly pension than life annuity without RoP

Annuity with Return of Purchase Price (RoP) provides a regular pension for life and, on death, returns the original lump sum paid (purchase price) to the nominee. In exchange, the monthly pension is lower than a plain life annuity without RoP feature.
Retirement Investment Strategies

Q31. Healthcare planning in retirement requires:

  1. A. Relying entirely on children for medical expenses
  2. B. Purchasing comprehensive health insurance before retirement (when premiums are lower and pre-existing conditions may be covered after waiting period) and maintaining a healthcare reserve fund
  3. C. Not needed if health is currently good
  4. D. Only government hospital registration
Show correct answer & explanation

Correct answer: B. Purchasing comprehensive health insurance before retirement (when premiums are lower and pre-existing conditions may be covered after waiting period) and maintaining a healthcare reserve fund

Healthcare planning is crucial — medical expenses typically rise sharply in retirement. Best practice includes: buying health insurance before retirement (lower premiums, longer coverage), creating a dedicated healthcare emergency corpus, and considering critical illness cover.
National Pension System

Q32. NPS returns are market-linked, meaning:

  1. A. Returns are guaranteed like PPF
  2. B. Returns depend on the performance of the pension fund's underlying investments (equity and bonds) — not guaranteed, but historically competitive over long term
  3. C. Returns are fixed at 8% per year
  4. D. Returns are linked to government FD rates
Show correct answer & explanation

Correct answer: B. Returns depend on the performance of the pension fund's underlying investments (equity and bonds) — not guaranteed, but historically competitive over long term

Unlike PPF or SCSS, NPS returns are not guaranteed. They depend on market performance of the chosen pension fund's investments in equity (E), corporate bonds (C), and government securities (G). Higher equity allocation = higher potential return with more volatility.
Social Security Schemes

Q33. EPFO (Employees' Provident Fund Organisation) manages:

  1. A. NPS for private sector employees
  2. B. EPF, EPS (Employees' Pension Scheme giving Rs. 1,000-7,500 monthly pension), and EDLI (Employees' Deposit Linked Insurance) for organised sector employees
  3. C. Only government pensions
  4. D. PPF accounts for all citizens
Show correct answer & explanation

Correct answer: B. EPF, EPS (Employees' Pension Scheme giving Rs. 1,000-7,500 monthly pension), and EDLI (Employees' Deposit Linked Insurance) for organised sector employees

EPFO manages three schemes: (1) EPF — retirement savings corpus, (2) EPS (Employees' Pension Scheme) — monthly pension on retirement funded by employer's 8.33% contribution, and (3) EDLI (life insurance scheme). It covers organised sector workers with EPF.
Retirement Planning Basics

Q34. Starting retirement savings early matters because:

  1. A. Early savers get higher FD rates
  2. B. Compounding works most powerfully over long periods — Rs. 1,000 invested at 25 grows far more than Rs. 1,000 invested at 45 for the same final corpus target
  3. C. Early retirement is mandatory
  4. D. Tax benefits are only for early savers
Show correct answer & explanation

Correct answer: B. Compounding works most powerfully over long periods — Rs. 1,000 invested at 25 grows far more than Rs. 1,000 invested at 45 for the same final corpus target

The power of compounding means early savers need much smaller monthly investments to reach the same retirement goal. Starting at 25 vs 35 can require nearly 2-3x smaller monthly SIP for the same corpus at 60 — making early start the most powerful retirement planning tool.
Pension Products

Q35. PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) provides:

  1. A. Pension of Rs. 3,000 per month
  2. B. Life insurance cover of Rs. 2 lakh for a nominal annual premium of Rs. 436 — for bank account holders between 18-50 years
  3. C. Health insurance coverage
  4. D. Accidental death coverage only
Show correct answer & explanation

Correct answer: B. Life insurance cover of Rs. 2 lakh for a nominal annual premium of Rs. 436 — for bank account holders between 18-50 years

PMJJBY provides renewable one-year term life insurance cover of Rs. 2 lakh for death due to any cause, at a nominal annual premium of Rs. 436 (auto-debited from bank account), for individuals between 18-50 years age with a bank or post office account.

How to use this set

Work through the questions in order without expanding the answers first, exactly as you would in the real Series XVII exam. Once you have picked an option, expand the answer to confirm whether you were right and read the explanation, even for questions you answered correctly, since the reasoning behind each option is where most of the learning happens.

If you get a question wrong, note the topic tag above the question and revisit that topic in the Series XVII exam page before your next attempt. When you are ready for exam-condition practice, use the timed mock test above; it shuffles these questions, applies the negative marking rule, and gives you a scored review at the end.