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In foreign exchange, what does the term 'spot rate' mean?

The interest rate charged on a currency loan

The current exchange rate for the immediate delivery of one currency for another

A rate agreed today for delivery on a future date

The official rate fixed permanently by a central bank

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Practice Questions100 questions

2026 Statistics

Key Facts: CISI IISI Exam

Multiple-Choice Questions

CISI IISI Exam Specification

1 hour

Exam Duration

CISI IISI Exam Specification

70%

Pass Mark

CISI

Syllabus Areas

CISI IISI Syllabus

80 hrs

Recommended Study Time

CISI

The CISI International Introduction to Securities and Investment (IISI) is a computer-based, multiple-choice exam of 50 questions in 1 hour, with a 70% pass mark (35 of 50) and no negative marking. Its nine syllabus areas and indicative question counts are: the global financial services industry (2), the economic environment (3), financial assets and markets (7), equities (9), bonds (5), derivatives (6), investment funds (7), financial services regulation (5) and other financial products (6). The qualification is global in focus and is also offered in Arabic and Spanish. CISI recommends a minimum of around 80 hours of study.

Sample CISI IISI Practice Questions

Try these sample questions to test your CISI IISI exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary role of the financial services industry in an economy?

A.To act as an intermediary that channels funds from those with surplus capital to those who need it

B.To set the level of interest rates directly for commercial banks

C.To collect taxes on behalf of national governments

D.To guarantee that all investments produce a positive return

Explanation: The core economic function of financial services is intermediation: connecting savers and lenders (surplus units) with borrowers and investors (deficit units), allowing capital to flow to its most productive use. This supports economic growth, liquidity and risk transfer.

2Within the global financial services industry, what best describes the role of a 'retail bank'?

A.It exclusively advises large corporations on mergers and acquisitions

B.It provides services such as deposit accounts, loans and mortgages to individuals and small businesses

C.It only trades government bonds on behalf of central banks

D.It manages sovereign wealth funds for national governments

Explanation: Retail banking serves individual consumers and small businesses with everyday products such as current and savings accounts, personal loans, credit cards and mortgages. It is distinct from wholesale or investment banking, which serves corporate and institutional clients.

3Which type of institution would most likely act as a 'market maker' on a stock exchange?

A.A retail saver depositing money in a building society

B.A government tax authority

C.An investment bank that quotes both buy and sell prices and stands ready to trade

D.A retail customer buying shares for a personal portfolio

Explanation: A market maker continuously quotes two-way prices (a bid to buy and an offer to sell) in a security and commits to trading at those prices, providing liquidity. This is a wholesale function typically performed by investment banks or specialist trading firms.

4What is the main purpose of a custodian within the financial services industry?

A.To set the dividend policy of listed companies

B.To determine a country's monetary policy

C.To underwrite new issues of equity for corporate clients

D.To hold and safeguard clients' securities and settle trades on their behalf

Explanation: A custodian provides safekeeping of assets, holds securities for institutional clients, processes settlement of trades, collects income such as dividends and handles corporate actions. It reduces operational and counterparty risk for asset owners.

5Which of the following is a function of an investment bank rather than a retail bank?

A.Advising a company on raising capital through a new share issue

B.Providing a personal current account

C.Offering a residential mortgage to a homebuyer

D.Issuing a debit card to an individual customer

Explanation: Investment banks specialise in corporate finance activities such as advising on capital raising, underwriting securities issues, and mergers and acquisitions. Personal accounts, mortgages and debit cards are retail banking products.

6In economics, what does 'gross domestic product' (GDP) measure?

A.The total amount of money held in a country's banks

B.The total value of goods and services produced within a country over a given period

C.The total foreign currency reserves of a central bank

D.The total profit of all listed companies in a country

Explanation: GDP is the standard measure of the size of an economy: the market value of all final goods and services produced within a country's borders in a specific period, usually a year or quarter. Rising GDP generally signals economic growth.

7What is 'inflation'?

A.An increase in a country's exports relative to imports

B.A rise in the value of a currency against others

C.A sustained general rise in the prices of goods and services over time

D.An increase in the number of people employed

Explanation: Inflation is a sustained increase in the general price level, which reduces the purchasing power of money. Central banks typically aim to keep inflation low and stable, often around a target such as 2%.

8Which body is typically responsible for setting a country's official interest rate as part of monetary policy?

A.The stock exchange

B.The finance ministry's tax department

C.A commercial retail bank

D.The central bank

Explanation: Monetary policy, including setting the official or base interest rate, is the responsibility of the central bank (for example the Bank of England, US Federal Reserve or European Central Bank). It uses rates to influence inflation and economic activity.

9What does 'fiscal policy' refer to?

A.A government's use of taxation and public spending to influence the economy

B.A central bank's control of interest rates

C.The regulation of insider dealing on stock markets

D.The setting of exchange rates by commercial banks

Explanation: Fiscal policy is the use of government spending and taxation to influence economic activity. By raising or cutting taxes and adjusting public expenditure, governments can stimulate or restrain demand, in contrast to monetary policy run by central banks.

10In a 'recession', what typically happens to economic output?

A.GDP rises sharply for a sustained period

B.GDP falls, conventionally for two consecutive quarters

C.Inflation always becomes negative

D.Unemployment always falls to zero

Explanation: A recession is commonly defined as a period of declining economic output, conventionally two consecutive quarters of falling real GDP. It is usually associated with rising unemployment and falling demand.

About the CISI IISI Exam

The CISI International Introduction to Securities and Investment (IISI) is a foundation-level certificate for new entrants to financial services. The exam has 50 multiple-choice questions over 1 hour, with a 70% pass mark and no negative marking, covering the financial services industry, the economy, assets and markets, equities, bonds, derivatives, investment funds, regulation and ethics, and other financial products from an international perspective.

Questions

50 scored questions

Time Limit

1 hour (60 minutes)

Passing Score

70% (35 of 50)

Exam Fee

Varies by country and accredited training provider; confirm current pricing with CISI (Chartered Institute for Securities and Investment (CISI))

CISI IISI Exam Content Outline

2 questions

The Global Financial Services Industry

Introduction to the financial services industry, its participants, intermediation, and the roles of retail banks, investment banks, custodians, exchanges and fund managers.

3 questions

The Economic Environment

How economic activity is measured and managed: GDP, inflation, the business cycle, monetary and fiscal policy, balance of payments and exchange rates.

7 questions

Financial Assets and Markets

Asset classes, primary and secondary markets, liquidity, diversification, the risk-return trade-off, settlement, bid-offer spreads and foreign exchange basics.

9 questions

Equities

Ordinary and preference shares, dividends and yield, P/E ratio, market capitalisation, IPOs, rights and bonus issues, indices and depositary receipts.

5 questions

Bonds

Bond features, coupon and redemption, government and corporate bonds, running yield, interest-rate risk, credit ratings and investment-grade versus high-yield.

6 questions

Derivatives

Futures, options (calls and puts), swaps, premiums, margin, clearing and counterparty risk, and uses for hedging and speculation.

7 questions

Investment Funds

Collective investment schemes, open-ended versus closed-ended funds, NAV pricing, ETFs, active versus passive management, hedge funds and money market funds.

5 questions

Financial Services Regulation

Aims of regulation, money laundering, KYC and customer due diligence, insider dealing, market abuse, conflicts of interest, integrity and treating customers fairly.

6 questions

Other Financial Products

Loans and mortgages, life assurance, pensions and annuities, the financial advice process, taxation basics, compound interest and risk profiling.

How to Pass the CISI IISI Exam

What You Need to Know

Passing score: 70% (35 of 50)
Exam length: 50 questions
Time limit: 1 hour (60 minutes)
Exam fee: Varies by country and accredited training provider; confirm current pricing with CISI

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CISI IISI Study Tips from Top Performers

1Use the official syllabus question counts to prioritise: equities, financial assets and markets, and investment funds carry the most marks.

2Because there is no negative marking, always answer every question, even if you have to make an educated guess.

3Learn the key definitions precisely, as many IISI questions test clear understanding of terms such as liquidity, coupon, NAV and hedging.

4Practise simple calculations such as dividend yield, running yield and compound interest until they are second nature.

5Do timed mock exams of 50 questions in 60 minutes to build pacing of about 72 seconds per question.

6Revise the regulation and ethics area carefully, as money laundering stages, KYC and market abuse are reliably examined.

Frequently Asked Questions

How many questions are on the CISI IISI exam?

The CISI International Introduction to Securities and Investment exam has 50 multiple-choice questions and lasts 1 hour. It is a computer-based test with no negative marking, so candidates should attempt every question.

What is the IISI pass mark?

The pass mark for the IISI is 70%, which means answering at least 35 of the 50 questions correctly. There is no negative marking for wrong answers.

What topics does the IISI syllabus cover?

The IISI covers nine areas: the global financial services industry, the economic environment, financial assets and markets, equities, bonds, derivatives, investment funds, financial services regulation, and other financial products such as loans, pensions and life assurance.

How long should I study for the IISI?

CISI recommends a minimum of around 80 hours of study, and the official workbook is estimated at roughly 70 hours. Most part-time candidates prepare over about 8 to 12 weeks.

Is the IISI exam recognised internationally?

Yes. The International Introduction to Securities and Investment has a global focus and is intended for new entrants to financial services worldwide. It is also offered in Arabic and Spanish.

Do I need any qualifications to take the IISI?

No formal prerequisites are required. The qualification is designed for new entrants and staff across all functions, including administration, finance, IT, customer service, sales, marketing and HR.