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Series XXI-B · Topic Drill

NISM Series XXI-B: Portfolio Managers Certification — Topic Drill Practice Questions

Focused topic-wise drill for NISM Series XXI-B: Portfolio Managers Certification revision. 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.

Attempt this set as a timed mock

Prefer an exam-like experience? Start this set as a shuffled, timed mock test with instant scoring, negative marking, and a full review screen.

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Practice questions

All 30 questions in Topic Drill

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

Portfolio strategy

Q1. Which statement best reflects a responsible approach to Portfolio strategy?

  1. A. Follow the applicable rule, document the process, and protect investor interest
  2. B. Prioritise speed over documentation
  3. C. Avoid explaining risks to the investor
  4. D. Use the same answer for every client situation
Show correct answer & explanation

Correct answer: A. Follow the applicable rule, document the process, and protect investor interest

Responsible market practice generally combines rule awareness, documentation, transparency, and investor protection.
Portfolio strategy

Q2. A learner repeatedly makes mistakes in Portfolio strategy. What should be done before the next mock?

  1. A. Revise the concept and attempt targeted questions
  2. B. Attempt only easier exams
  3. C. Ignore the topic because one mock is enough
  4. D. Memorise option letters
Show correct answer & explanation

Correct answer: A. Revise the concept and attempt targeted questions

Targeted revision is more effective than repeating the same test without understanding the weak concept.
Portfolio strategy

Q3. In an exam scenario based on Portfolio strategy, why are definitions important?

  1. A. They help identify the exact role, product, rule, or risk being tested
  2. B. They make all options correct
  3. C. They replace calculations
  4. D. They remove the need to read the question
Show correct answer & explanation

Correct answer: A. They help identify the exact role, product, rule, or risk being tested

Definitions and roles often decide the correct option in certification-style questions.
Portfolio strategy

Q4. What is a common mistake while answering Portfolio strategy questions?

  1. A. Selecting an option before reading all conditions in the scenario
  2. B. Checking whether a rule or process applies
  3. C. Comparing similar options
  4. D. Reviewing the explanation after the test
Show correct answer & explanation

Correct answer: A. Selecting an option before reading all conditions in the scenario

Scenario questions often include conditions that change the answer, so every fact matters.
Portfolio strategy

Q5. Which revision note is most useful for Portfolio strategy?

  1. A. A short note linking the rule, exception, and practical example
  2. B. Only the question number
  3. C. Only the first option
  4. D. A note unrelated to the syllabus
Show correct answer & explanation

Correct answer: A. A short note linking the rule, exception, and practical example

Good notes connect the concept to its application, which improves recall in new questions.
Risk management

Q6. Which statement best reflects a responsible approach to Risk management?

  1. A. Follow the applicable rule, document the process, and protect investor interest
  2. B. Prioritise speed over documentation
  3. C. Avoid explaining risks to the investor
  4. D. Use the same answer for every client situation
Show correct answer & explanation

Correct answer: A. Follow the applicable rule, document the process, and protect investor interest

Responsible market practice generally combines rule awareness, documentation, transparency, and investor protection.
Risk management

Q7. A learner repeatedly makes mistakes in Risk management. What should be done before the next mock?

  1. A. Revise the concept and attempt targeted questions
  2. B. Attempt only easier exams
  3. C. Ignore the topic because one mock is enough
  4. D. Memorise option letters
Show correct answer & explanation

Correct answer: A. Revise the concept and attempt targeted questions

Targeted revision is more effective than repeating the same test without understanding the weak concept.
Risk management

Q8. In an exam scenario based on Risk management, why are definitions important?

  1. A. They help identify the exact role, product, rule, or risk being tested
  2. B. They make all options correct
  3. C. They replace calculations
  4. D. They remove the need to read the question
Show correct answer & explanation

Correct answer: A. They help identify the exact role, product, rule, or risk being tested

Definitions and roles often decide the correct option in certification-style questions.
Risk management

Q9. What is a common mistake while answering Risk management questions?

  1. A. Selecting an option before reading all conditions in the scenario
  2. B. Checking whether a rule or process applies
  3. C. Comparing similar options
  4. D. Reviewing the explanation after the test
Show correct answer & explanation

Correct answer: A. Selecting an option before reading all conditions in the scenario

Scenario questions often include conditions that change the answer, so every fact matters.
Risk management

Q10. Which revision note is most useful for Risk management?

  1. A. A short note linking the rule, exception, and practical example
  2. B. Only the question number
  3. C. Only the first option
  4. D. A note unrelated to the syllabus
Show correct answer & explanation

Correct answer: A. A short note linking the rule, exception, and practical example

Good notes connect the concept to its application, which improves recall in new questions.
Client mandates

Q11. Which statement best reflects a responsible approach to Client mandates?

  1. A. Follow the applicable rule, document the process, and protect investor interest
  2. B. Prioritise speed over documentation
  3. C. Avoid explaining risks to the investor
  4. D. Use the same answer for every client situation
Show correct answer & explanation

Correct answer: A. Follow the applicable rule, document the process, and protect investor interest

Responsible market practice generally combines rule awareness, documentation, transparency, and investor protection.
Client mandates

Q12. A learner repeatedly makes mistakes in Client mandates. What should be done before the next mock?

  1. A. Revise the concept and attempt targeted questions
  2. B. Attempt only easier exams
  3. C. Ignore the topic because one mock is enough
  4. D. Memorise option letters
Show correct answer & explanation

Correct answer: A. Revise the concept and attempt targeted questions

Targeted revision is more effective than repeating the same test without understanding the weak concept.
Client mandates

Q13. In an exam scenario based on Client mandates, why are definitions important?

  1. A. They help identify the exact role, product, rule, or risk being tested
  2. B. They make all options correct
  3. C. They replace calculations
  4. D. They remove the need to read the question
Show correct answer & explanation

Correct answer: A. They help identify the exact role, product, rule, or risk being tested

Definitions and roles often decide the correct option in certification-style questions.
Client mandates

Q14. What is a common mistake while answering Client mandates questions?

  1. A. Selecting an option before reading all conditions in the scenario
  2. B. Checking whether a rule or process applies
  3. C. Comparing similar options
  4. D. Reviewing the explanation after the test
Show correct answer & explanation

Correct answer: A. Selecting an option before reading all conditions in the scenario

Scenario questions often include conditions that change the answer, so every fact matters.
Client mandates

Q15. Which revision note is most useful for Client mandates?

  1. A. A short note linking the rule, exception, and practical example
  2. B. Only the question number
  3. C. Only the first option
  4. D. A note unrelated to the syllabus
Show correct answer & explanation

Correct answer: A. A short note linking the rule, exception, and practical example

Good notes connect the concept to its application, which improves recall in new questions.
Performance attribution

Q16. Which statement best reflects a responsible approach to Performance attribution?

  1. A. Follow the applicable rule, document the process, and protect investor interest
  2. B. Prioritise speed over documentation
  3. C. Avoid explaining risks to the investor
  4. D. Use the same answer for every client situation
Show correct answer & explanation

Correct answer: A. Follow the applicable rule, document the process, and protect investor interest

Responsible market practice generally combines rule awareness, documentation, transparency, and investor protection.
Performance attribution

Q17. A learner repeatedly makes mistakes in Performance attribution. What should be done before the next mock?

  1. A. Revise the concept and attempt targeted questions
  2. B. Attempt only easier exams
  3. C. Ignore the topic because one mock is enough
  4. D. Memorise option letters
Show correct answer & explanation

Correct answer: A. Revise the concept and attempt targeted questions

Targeted revision is more effective than repeating the same test without understanding the weak concept.
Performance attribution

Q18. In an exam scenario based on Performance attribution, why are definitions important?

  1. A. They help identify the exact role, product, rule, or risk being tested
  2. B. They make all options correct
  3. C. They replace calculations
  4. D. They remove the need to read the question
Show correct answer & explanation

Correct answer: A. They help identify the exact role, product, rule, or risk being tested

Definitions and roles often decide the correct option in certification-style questions.
Performance attribution

Q19. What is a common mistake while answering Performance attribution questions?

  1. A. Selecting an option before reading all conditions in the scenario
  2. B. Checking whether a rule or process applies
  3. C. Comparing similar options
  4. D. Reviewing the explanation after the test
Show correct answer & explanation

Correct answer: A. Selecting an option before reading all conditions in the scenario

Scenario questions often include conditions that change the answer, so every fact matters.
Performance attribution

Q20. Which revision note is most useful for Performance attribution?

  1. A. A short note linking the rule, exception, and practical example
  2. B. Only the question number
  3. C. Only the first option
  4. D. A note unrelated to the syllabus
Show correct answer & explanation

Correct answer: A. A short note linking the rule, exception, and practical example

Good notes connect the concept to its application, which improves recall in new questions.
Compliance

Q21. Which statement best reflects a responsible approach to Compliance?

  1. A. Follow the applicable rule, document the process, and protect investor interest
  2. B. Prioritise speed over documentation
  3. C. Avoid explaining risks to the investor
  4. D. Use the same answer for every client situation
Show correct answer & explanation

Correct answer: A. Follow the applicable rule, document the process, and protect investor interest

Responsible market practice generally combines rule awareness, documentation, transparency, and investor protection.
Compliance

Q22. A learner repeatedly makes mistakes in Compliance. What should be done before the next mock?

  1. A. Revise the concept and attempt targeted questions
  2. B. Attempt only easier exams
  3. C. Ignore the topic because one mock is enough
  4. D. Memorise option letters
Show correct answer & explanation

Correct answer: A. Revise the concept and attempt targeted questions

Targeted revision is more effective than repeating the same test without understanding the weak concept.
Compliance

Q23. In an exam scenario based on Compliance, why are definitions important?

  1. A. They help identify the exact role, product, rule, or risk being tested
  2. B. They make all options correct
  3. C. They replace calculations
  4. D. They remove the need to read the question
Show correct answer & explanation

Correct answer: A. They help identify the exact role, product, rule, or risk being tested

Definitions and roles often decide the correct option in certification-style questions.
Compliance

Q24. What is a common mistake while answering Compliance questions?

  1. A. Selecting an option before reading all conditions in the scenario
  2. B. Checking whether a rule or process applies
  3. C. Comparing similar options
  4. D. Reviewing the explanation after the test
Show correct answer & explanation

Correct answer: A. Selecting an option before reading all conditions in the scenario

Scenario questions often include conditions that change the answer, so every fact matters.
Compliance

Q25. Which revision note is most useful for Compliance?

  1. A. A short note linking the rule, exception, and practical example
  2. B. Only the question number
  3. C. Only the first option
  4. D. A note unrelated to the syllabus
Show correct answer & explanation

Correct answer: A. A short note linking the rule, exception, and practical example

Good notes connect the concept to its application, which improves recall in new questions.
Risk management

Q26. In Series XXI-B Topic Drill, a learner wants to improve accuracy in Risk management. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Performance attribution

Q27. In Series XXI-B Topic Drill, a learner wants to improve accuracy in Performance attribution. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Portfolio strategy

Q28. In Series XXI-B Topic Drill, a learner wants to improve accuracy in Portfolio strategy. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Client mandates

Q29. In Series XXI-B Topic Drill, a learner wants to improve accuracy in Client mandates. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.
Compliance

Q30. In Series XXI-B Topic Drill, a learner wants to improve accuracy in Compliance. Which study action is most useful?

  1. A. Review the concept, read explanations, and practise similar questions
  2. B. Memorise only the previous option letter
  3. C. Skip the topic because it appeared difficult
  4. D. Attempt faster without checking why answers were wrong
Show correct answer & explanation

Correct answer: A. Review the concept, read explanations, and practise similar questions

Accuracy improves when the learner connects the concept, the explanation, and repeated practice on the same weak area.

How to use this set

Work through the questions in order without expanding the answers first, exactly as you would in the real Series XXI-B 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 XXI-B 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.