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100+ Free CISI Introduction to Securities and Investment Practice Questions

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Key Facts: CISI Introduction to Securities and Investment Exam

50

Multiple-Choice Questions

CISI ISI Syllabus

70%

Pass Mark (35 of 50)

CISI ISI Syllabus

1 hour

Exam Duration

CISI ISI Syllabus

11

Syllabus Elements

CISI ISI Syllabus

Level 3

Ofqual Award

CISI

50-70 hrs

Suggested Study Time

CISI

The CISI Introduction to Securities and Investment is a one-hour computer-based exam of 50 multiple-choice questions with a 70% pass mark (35 of 50 marks); 46-50 earns a Pass with Merit. The syllabus is divided into 11 elements with set question weightings: Equities (7 questions), Bonds and Investment Funds (6 each), Financial Assets and Markets, Financial Services Regulation, and Taxation/Wrappers/Trusts (5 each), Derivatives (4), and Introduction, Economic Environment, Other Financial Products, and Financial Advice (3 each). It is an Ofqual Level 3 Award, with CISI suggesting around 50-70 study hours. The exam is taken on demand by remote invigilation or at a CISI CBT centre.

Sample CISI Introduction to Securities and Investment Practice Questions

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

1Which of the following is the main role of a retail bank within the financial services industry?
A.Taking deposits from and lending to individuals and small businesses
B.Advising governments on large mergers and acquisitions
C.Underwriting new share issues for listed companies
D.Setting the UK base interest rate
Explanation: Retail banks serve individuals and small businesses, primarily by accepting deposits and providing loans, mortgages and payment services. Their core function is the intermediation between savers and borrowers at the retail level.
2A 'platform' in the context of UK retail investment is best described as which of the following?
A.A physical trading floor where shares are auctioned
B.An online service that allows investors to buy, hold and manage a range of investments in one place
C.A government body that regulates investment firms
D.A type of structured deposit guaranteed by the state
Explanation: An investment platform is an online service (a wrap or fund supermarket) that lets investors buy, hold and administer funds, shares and other investments together, often within wrappers such as ISAs and SIPPs. It consolidates administration and reporting.
3Which institution acts as the central bank of the United Kingdom?
A.The Financial Conduct Authority
B.The London Stock Exchange
C.The Bank of England
D.HM Treasury
Explanation: The Bank of England is the UK's central bank. It sets monetary policy through the base rate, issues banknotes, and acts as lender of last resort to the banking system.
4What is the primary function of a custodian in the investment process?
A.To provide investment advice to retail clients
B.To set the price of shares on an exchange
C.To audit a company's annual accounts
D.To safeguard clients' assets and settle their transactions
Explanation: A custodian holds and safeguards a client's securities and cash, processes settlement of trades, collects dividends and income, and handles corporate actions. This protects assets and reduces settlement risk.
5Which of the following best describes the role of a fund manager?
A.Making investment decisions on behalf of a pooled fund's investors
B.Holding clients' cash on deposit and offering current accounts
C.Regulating the conduct of investment firms
D.Acting as the trustee that oversees a unit trust
Explanation: A fund manager makes the investment decisions for a collective investment scheme, selecting and trading assets in line with the fund's objectives to deliver returns for investors. Day-to-day buy and sell decisions are their core responsibility.
6In the financial services industry, what does the term 'institutional investor' most commonly refer to?
A.An individual investing personal savings through an ISA
B.An organisation such as a pension fund or insurance company that invests large sums
C.A government department that collects taxes
D.A high-street bank branch serving the public
Explanation: Institutional investors are organisations, such as pension funds, insurance companies and sovereign wealth funds, that pool and invest large amounts of money. They are major participants in capital markets and can move prices through the scale of their trades.
7Gross Domestic Product (GDP) is best defined as which of the following?
A.The total amount of money held on deposit in a country's banks
B.The total value of a country's exports only
C.The total value of goods and services produced within a country in a period
D.The total debt owed by a country's government
Explanation: GDP measures the total monetary value of all final goods and services produced within a country's borders over a given period, usually a quarter or a year. It is the headline indicator of the size and growth of an economy.
8Which of the following describes 'fiscal policy'?
A.The central bank's setting of interest rates
B.The regulation of bank capital ratios
C.The buying and selling of foreign currency reserves
D.Government decisions on taxation and public spending
Explanation: Fiscal policy refers to a government's use of taxation and public expenditure to influence the economy. By altering tax rates or spending levels, governments can stimulate or slow economic activity.
9If a central bank raises its base interest rate, what is the most likely immediate effect?
A.Borrowing becomes more expensive and saving becomes more attractive
B.Inflation immediately rises sharply
C.Exports automatically become cheaper for foreign buyers
D.Government tax revenues fall directly
Explanation: Raising the base rate increases the cost of borrowing and the return on saving, which tends to dampen demand and is typically used to control inflation. Higher rates discourage spending and encourage holding cash.
10Which body in the UK is responsible for setting the Bank Rate to meet the government's inflation target?
A.The Financial Conduct Authority
B.The Monetary Policy Committee of the Bank of England
C.HM Revenue & Customs
D.The Prudential Regulation Authority
Explanation: The Monetary Policy Committee (MPC) of the Bank of England sets the Bank Rate with the aim of meeting the government's inflation target, currently 2% measured by CPI. The MPC meets regularly to assess economic conditions.

About the CISI Introduction to Securities and Investment Exam

The CISI Introduction to Securities and Investment (ISI) is an Ofqual Level 3 Award and a foundation qualification covering the industry, the economy, assets and markets, equities, bonds, derivatives, investment funds, regulation, taxation, other products, and financial advice through a 50-question computer-based exam.

Questions

50 scored questions

Time Limit

One hour (60 minutes)

Passing Score

70% (35 of 50); 46-50 is a Pass with Merit

Exam Fee

CISI exam enrolment fee set by CISI; confirm the current price at booking (Chartered Institute for Securities & Investment (CISI))

CISI Introduction to Securities and Investment Exam Content Outline

6%

Introduction (The Financial Services Industry)

Roles of retail and investment banks, central banks, fund managers, custodians, platforms, and institutional and retail participants within the financial services industry.

6%

Economic Environment

GDP, inflation, the business cycle, fiscal and monetary policy, the role of the Bank of England and the Monetary Policy Committee, and interest-rate effects.

10%

Financial Assets and Markets

Cash deposits, the money market and instruments such as Treasury bills, property, the foreign exchange market, primary and secondary markets, and diversification.

14%

Equities

Ordinary and preference shares, dividend yield, rights and bonus issues, indices, market makers, settlement, stamp duty, and ranking on liquidation.

12%

Bonds

Bond characteristics, coupons, gilts, index-linked gilts, corporate bonds, credit ratings, eurobonds, redemption, running yield, and yield to maturity.

8%

Derivatives

Uses of derivatives, futures, options, premiums, swaps, credit default swaps, commodities, gearing, central clearing, and key risks.

12%

Investment Funds

Unit trusts, OEICs, investment trusts, ETFs, open versus closed-ended structures, net asset value, discounts and premiums, active versus passive, and hedge funds.

10%

Financial Services Regulation

FCA and PRA roles, money laundering stages, insider dealing, market abuse, data protection, KYC, complaints, the Financial Ombudsman Service, and the FSCS.

10%

Taxation, Investment Wrappers and Trusts

Income tax, capital gains tax, inheritance tax, ISAs and Junior ISAs, pensions including SIPPs and defined benefit, and trust roles such as settlor and trustee.

6%

Other Financial Products

Secured and unsecured loans, repayment and interest-only mortgages, and term and whole-of-life assurance protection products.

6%

Financial Advice

Areas of financial advice, the advice process and fact find, suitability, attitude to risk and capacity for loss, integrity, and relevant legal concepts.

How to Pass the CISI Introduction to Securities and Investment Exam

What You Need to Know

  • Passing score: 70% (35 of 50); 46-50 is a Pass with Merit
  • Exam length: 50 questions
  • Time limit: One hour (60 minutes)
  • Exam fee: CISI exam enrolment fee set by CISI; confirm the current price at booking

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 Introduction to Securities and Investment Study Tips from Top Performers

1Allocate study time roughly in line with the element weightings, giving more time to Equities, Bonds, and Investment Funds, which carry the most questions.
2Do not neglect the lower-weighted elements such as Financial Advice and Other Financial Products, as every mark counts toward the 70% pass mark.
3Use the official CISI workbook as your primary source and confirm any figures or rules against the current edition.
4Practise calculation questions, such as dividend yield and running yield, until they are quick and reliable.
5Build an error log tagged by element so you can target weak areas before the exam.
6Rehearse with timed 50-question mocks to get comfortable with the one-hour pace.

Frequently Asked Questions

How many questions are on the CISI Introduction to Securities and Investment exam?

The CISI ISI exam has 50 multiple-choice questions to be answered in one hour. Computer-based candidates may also be asked up to 10% additional trial questions that are not separately identified and do not count toward the result.

What is the pass mark for the CISI ISI exam?

The pass mark is 70%, which means scoring at least 35 of the 50 marks. A score of 46-50 is recorded as a Pass with Merit, while 0-34 is a Fail.

How is the CISI ISI syllabus weighted?

The syllabus has 11 elements. Equities carries the most questions (7), followed by Bonds and Investment Funds (6 each), then Financial Assets and Markets, Financial Services Regulation, and Taxation/Wrappers/Trusts (5 each), Derivatives (4), and the Introduction, Economic Environment, Other Financial Products, and Financial Advice elements (3 each).

What level qualification is the CISI ISI?

The Introduction to Securities and Investment is an Ofqual-regulated Level 3 Award. It is a foundation qualification suitable for new entrants to the securities and investment industry.

How long should I study for the CISI ISI exam?

CISI suggests around 50-70 hours of study using the official workbook and elearning. Most part-time candidates prepare over roughly 6-10 weeks.

How is the CISI ISI exam taken?

The exam is computer-based and available on demand. Candidates can sit it through remote invigilation or at a CISI computer-based testing centre.

Are there entry requirements for the CISI ISI exam?

No. There are no formal entry requirements, which makes the qualification well suited to those new to or exploring the financial services industry.