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Free Practice Questions for SET IC Plain P1

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Sample SET IC Plain P1 Practice Questions

Try these sample questions to review concepts for the SET IC Plain P1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 60+ question experience with AI tutoring.

1Which statement correctly distinguishes real GDP from nominal GDP?
A.Real GDP removes price changes to measure output growth; nominal GDP values output at current prices.
B.Nominal GDP removes price changes; real GDP values output at current prices.
C.Real GDP excludes investment spending; nominal GDP includes investment spending.
D.Real GDP measures domestic production; nominal GDP measures only production by citizens abroad.
Explanation: Real GDP adjusts for changes in prices, helping distinguish increased production from inflation. Nominal GDP uses current prices, so its growth can reflect both output and price changes.
2Other things equal, how does an increase in the Bank of Thailand's policy rate tend to restrain demand through the interest-rate channel?
A.It lowers borrowing costs and encourages debt-financed consumption.
B.It raises borrowing costs and discourages some consumption and investment.
C.It directly increases government infrastructure spending.
D.It reduces firms' corporate income tax liabilities.
Explanation: A higher policy rate tends to raise market and bank lending rates, increasing the cost of borrowing. This can moderate spending and investment, although the size and timing of transmission vary.
3A company issues new shares to raise capital, and an investor later sells those shares to another investor on the SET. How are the two transactions classified?
A.Both are primary-market transactions because the same company issued the shares.
B.The issue is secondary-market trading; the later resale is primary-market trading.
C.Both are secondary-market transactions because investors pay for the shares.
D.The issue is a primary-market transaction; the later resale is a secondary-market transaction.
Explanation: The primary market channels proceeds from newly issued securities to the issuer. A later secondary-market sale transfers an existing security between investors and does not itself raise new capital for that company.
4Which transaction finances a company through the securities market rather than through a bank's balance sheet?
A.A bank uses its deposit funding to extend a working-capital loan.
B.A company draws on an overdraft from its commercial bank.
C.A company issues debentures purchased by investors.
D.A bank extends a mortgage secured on the company's factory.
Explanation: Issuing debentures allows investors to hold a claim directly against the borrowing company. A bank loan instead places the lending claim on the bank's balance sheet, even if the bank obtains its own funding from savers.
5Which instrument belongs to the money market rather than the long-term capital market?
A.A ten-year corporate debenture.
B.An ordinary share with no maturity date.
C.A five-year government bond.
D.A Treasury bill originally issued with a 91-day maturity.
Explanation: The money market deals in short-term instruments, generally with original maturities of one year or less. A 91-day Treasury bill meets that description; the other instruments provide longer-term capital.
6A company's only current assets are cash of 40 million THB, receivables of 60 million THB, and inventory of 100 million THB. Current liabilities are 100 million THB. What are its current ratio and quick ratio?
A.Current ratio 2.0 times; quick ratio 1.0 time.
B.Current ratio 2.0 times; quick ratio 0.4 times.
C.Current ratio 1.0 time; quick ratio 2.0 times.
D.Current ratio 1.6 times; quick ratio 1.0 time.
Explanation: Current assets total 40 + 60 + 100 = 200 million THB, giving a current ratio of 200/100 = 2.0. Excluding inventory leaves quick assets of 100 million THB, so the quick ratio is 100/100 = 1.0.
7A chart shows repeated price declines toward 40 THB followed by rebounds. A technical analyst identifies a support area near 40 THB. Which interpretation is most appropriate?
A.The company's audited book value must equal 40 THB per share.
B.Buying interest has previously emerged near that price, but a future decline through it remains possible.
C.A buy order at 40 THB is protected against loss by the exchange.
D.The price will encounter selling resistance whenever it falls toward 40 THB.
Explanation: Support describes a price area where buying interest has previously helped arrest a decline. It is an interpretation of market behavior, not a guaranteed floor or a measure of accounting value.
8A Thai investor buys an unhedged foreign asset for USD 1,000 when the exchange rate is 36 THB/USD. The asset rises to USD 1,100 while the rate falls to 32 THB/USD. Ignoring income, fees, and taxes, what is the investor's return in THB?
A.+10.00%
B.+22.22%
C.-2.22%
D.-11.11%
Explanation: The initial THB cost is 1,000 × 36 = 36,000 THB, and the ending value is 1,100 × 32 = 35,200 THB. The THB return is (35,200/36,000) − 1 = approximately −2.22%; the foreign-asset gain is more than offset by baht appreciation.
9Which approach best describes passive portfolio management?
A.Selecting undervalued shares with the aim of consistently outperforming a chosen index.
B.Changing equity exposure frequently in response to forecasts of market turning points.
C.Concentrating the portfolio in the manager's highest-conviction sector.
D.Seeking to track a defined index while controlling costs and tracking differences.
Explanation: Passive management seeks exposure to a defined benchmark rather than outperformance through security selection or market timing. It still requires portfolio administration, cash-flow management, and attention to costs and tracking differences.
10A company's profit has grown rapidly, but operating cash flow is increasingly negative and receivables have tripled. Which assessment best balances the evidence and its limitations?
A.The divergence warrants investigation of revenue recognition and collection quality; it does not by itself prove fraud.
B.Profit growth establishes that customer collections have improved.
C.The divergence proves that all reported sales are fictitious.
D.Receivables growth is a financing cash inflow that explains the negative operating cash flow.
Explanation: Growing receivables alongside weak operating cash flow can signal collection problems or aggressive recognition of revenue. Business growth and working-capital timing can also contribute, so an analyst should investigate rather than infer fraud from these figures alone.

About the SET IC Plain P1 Exam

Independent practice by OpenExamPrep for Investment Consultant: Plain Products — P1 Plain Products: Full Paper (ผู้แนะนำการลงทุนตราสารทั่วไป / IC Plain). This is an English-language MCQ study adaptation for investment concepts and professional decisions, not an official translation or a simulation of the official exam's language environment. SET publishes Thai and English examination routes. The practice set samples the three official modules, with equal local coverage of equities, bonds, and mutual funds; it does not replace the official reading materials or cover every learning objective. Passing the official P1 examination does not itself confer SEC approval to advise clients.

Exam sponsor: The Stock Exchange of Thailand (SET), through approved ATI and AIMC testing centers; the SEC separately approves investment consultants. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

100 four-option MCQs in 150 minutes: Module 1 has 30 items, Module 2 has 20, and Module 3 has 50. Pass with at least 70 overall and at least 14 in Module 2. The P1 handbook specifies this knowledge test and lists no additional oral, practical, assignment, or case-study assessment for the paper.

Time Limit

150 minutes (2 hours 30 minutes)

Passing Score

At least 70/100 overall AND at least 14/20 in Module 2

Exam / Certification Fees

THB 1,200 (Thai P1); THB 3,000 (English P1). Separate SEC approval requirements apply.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

30%

Module 1: Fundamental Knowledge

Markets and investment decisions; risk, return and diversification; economic, company and technical analysis; foreign investment.

20%

Module 2: Rules and Suitable Investment Consulting

Sales and services conduct, professional conduct, and suitable investment consulting: 8, 7, and 5 official questions respectively.

50%

Module 3: Product Knowledge

17 official equity questions, 17 fixed-income questions, and 16 mutual-fund questions. The 60-item local set contains 10 in each product group.

Preparing for the SET IC Plain P1 Exam

What You Need to Know

  • Passing score: At least 70/100 overall AND at least 14/20 in Module 2
  • Assessment: 100 four-option MCQs in 150 minutes: Module 1 has 30 items, Module 2 has 20, and Module 3 has 50. Pass with at least 70 overall and at least 14 in Module 2. The P1 handbook specifies this knowledge test and lists no additional oral, practical, assignment, or case-study assessment for the paper.
  • Time limit: 150 minutes (2 hours 30 minutes)
  • Exam / certification fees: THB 1,200 (Thai P1); THB 3,000 (English P1). Separate SEC approval requirements apply. Official sources

Using Our Practice Resources

  • Work through all 60 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

SET IC Plain P1: Suggested Study Strategy

1Prepare the Module 2 material separately: the official paper requires at least 14/20 in that module as well as 70/100 overall.
2Study the complete official outline, including technical analysis and foreign securities investment, rather than relying on this practice sample alone.
3Give bonds and mutual funds substantial study time: the official product module allocates 17 questions to equities, 17 to fixed income, and 16 to mutual funds.
4Work through the units, cash-flow timing, exercise ratios, and fee conventions in calculation questions before selecting an answer.
5Check current SET, SEC, and Revenue Department publications for changing trading rules and tax-saving fund conditions. Historical textbook examples may describe earlier rules.

Frequently Asked Questions

What is the official P1 passing requirement?

At least 70 correct answers out of 100 overall and at least 14 out of the 20 Module 2 questions. An overall score of 70 or more does not compensate for failing the separate Module 2 requirement.

Is an English examination available?

Yes. SET publishes an English P1 examination and a procedure for foreign candidates to check qualifications and apply through an approved testing center. Confirm the suitable paper, language arrangements, and current booking conditions with the center. The published English P1 fee is THB 3,000; the Thai P1 fee is THB 1,200.

Is this the official English examination or its translation?

No. This is an independent English-language MCQ study adaptation by OpenExamPrep. It is neither an official translation nor an official-format or language-environment simulation. The real P1 examination has 100 questions; our shorter study set is a separate practice resource.

Does passing P1 automatically authorize investment advice?

No. SEC approval is separate. The standard IC Plain route in the SEC qualification table includes a bachelor's degree and the required examination passes. Alternative qualifications and returning-applicant routes differ. IC Plain approval does not by itself permit advice on complex debt, complex funds, or derivatives.

How recent must examination results be for initial SEC approval?

The SEC's standard qualification table requires the relevant examination results to have been passed within two years of the approval application. This should not be confused with an automatic licence duration; alternative routes, continuing training, and renewal have their own conditions.