Free CISI International Introduction to Securities & Investment mock exam
Sit the whole international paper: 50 questions running from the economic environment and equities to funds, derivatives and regulation, under a one-hour clock. Free, no sign-up, with a weighted score and an explanation for every answer.
Sitting the UK Introduction instead?What is on the CISI International Introduction to Securities & Investment mock exam?
One full International Introduction to Securities & Investment practice paper: 50 questions in 60 minutes, weighted across the ten syllabus elements exactly as the real paper is. Score 35 out of 50 to meet the 70% practice threshold, then review every answer one at a time.
- Questions
- 50 original practice questions
- Time
- 60 minutes
- Practice threshold
- 70%, which is 35 of 50
- Access
- Free, with no account or card
How the paper is weighted
This is the international foundation unit of the CISI Level 3 Certificate in Investment Operations, and it is not the UK Introduction to Securities & Investment. Different workbook, different examiner, and a syllabus written for international rather than UK markets. Ten elements share 50 questions, and two of them take 16 between them.
| Element | Questions |
|---|---|
| 1. Introduction | 3 |
| 2. The Economic Environment | 4 |
| 3. Equities/Stocks | 9 |
| 4. Bonds | 7 |
| 5. Other Markets and Investments | 5 |
| 6. Derivatives | 4 |
| 7. Investment Funds | 6 |
| 8. Financial Services Regulation | 5 |
| 9. Other Financial Products | 4 |
| 10. Financial Advice | 3 |
| Total | 50 |
Equities/Stocks is nine marks and Bonds is seven, 16 of the 50 together and almost a third of the paper. Investment Funds is six, Other Markets and Investments and Regulation and Ethics are five each, The Economic Environment, Derivatives and Other Financial Products are four apiece, and Introduction and Financial Advice are three each.
For the cleanest rehearsal, set aside the full 60 minutes, avoid notes and answer every question. There is no negative marking on the real paper, so a guess is always better than a blank. The mock hides feedback until submission and warns you before handing in a paper with blanks.
Full practice paper
50 questions. 60 minutes. No sign-up.
Sit the paper in one go if you can. Answers and explanations stay hidden until you submit, so the score is a more useful rehearsal than an instant-feedback quiz.
The timer starts when you press the button. Reloading or leaving the page ends this sitting.
Sample International Intro to Securities questions, with answers
8 questions at the standard of the paper above, weighted towards the elements that carry the most marks. Pick an answer to see whether you were right and why. None of these appear in the timed mock, so working through them first costs you nothing when you sit it.
When a government wants to damp demand in the economy and to add to the revenue it collects at the same time, what would it do?
Not quite. The answer is D.
Taking a larger share of earnings leaves firms and households with less to spend and at the same time adds to what the state receives, which is the pair of effects wanted here. Spending less on public services tempts because it damps demand just as surely, but it brings in nothing extra and so meets only half of what is being asked.
In which of the following circumstances do preference shares normally acquire the right to vote?
Not quite. The answer is D.
Preference shares are normally non-voting, except in certain circumstances such as when their dividends have not been paid, so the vote arrives as a remedy for the missed fixed dividend. Winding up is the tempting alternative, because preference shares do rank ahead of ordinary shares for repayment of capital when a company is wound up, but seniority in a liquidation is a claim on assets and not a right to vote. Attending a meeting in person is simply one of the two ways an existing vote is cast, and a redemption date fixes when the nominal value is repaid, not when a vote begins.
Which of the following statements about the nominal value of a bondholding is true?
Not quite. The answer is D.
The nominal is the amount of stock held, the amount on which interest is paid and the amount that will eventually be repaid, so it is the amount of a bond repaid on maturity, also known as face or par value. The quoted price is the tempting alternative, because it is the other figure carried against a holding, but the convention in the bond markets is to quote per US$100 nominal and that figure settles only what the stock costs to buy.
Why does a government issue Treasury bills at a discount instead of paying interest?
Not quite. The answer is C.
Paper of this kind runs for only weeks or months, and paying a coupon on it would mean registering the holders and making interest payments for the sake of that short period, so the return is folded into the issue price and the bill is simply repaid at par. A lower borrowing cost is the tempting answer because a discount looks like a saving to the issuer, but the price investors pay already reflects the return they want and what the discount saves is the paperwork.
What does a futures buyer that holds its position until the delivery date receive?
Not quite. The answer is C.
Most futures positions are closed out before the delivery date, but a buyer that does not close out pays the agreed sum and receives the underlying asset. Payment of the agreed sum belongs to the same settlement, but it passes from the buyer to the seller. Margin is collateral lodged while the position is open, not what delivery gives the buyer, and a premium is paid by the buyer of an option, not received by the buyer of a future.
Passive portfolios cost less to run than active ones because they:
Not quite. The answer is B.
Once a passive portfolio has been set up it runs on a lower ratio of staff to funds managed and turns its holdings over less than an active portfolio does, and both of those hold the running cost down. That relatively few active managers consistently outperform benchmark indices is a separate argument for indexing altogether and says nothing about what a passive fund costs to operate.
How should a member of the CISI act on a matter that falls outside their competence?
Not quite. The answer is B.
The CISI Code of Conduct principle Aware of Capabilities asks a member to decline to act on any matter about which they are not competent or qualified, unless they have access to such advice or assistance as will let the work be carried out in a professional manner, taking into account the nature of the individual mandate given. Professional development is tempting because the Code does require members to strive continually for professional excellence and to commit to CPD, but that is the separate Professional Development principle and it says nothing about the mandate now in front of the member. The Code sets no test of client consent or of regulatory approval before a member takes on work beyond their competence.
Under an Ijara contract, when does title to the property pass to a customer who has made all the payments due?
Not quite. The answer is A.
Under an Ijara contract the bank owns the property and leases it to the customer for a rental, promising to transfer the title at the end of the financing period provided all the payments have been made. It is tempting to think title passes as soon as the contract is signed, since the customer lives in the property from the start, but living there under a lease is not the same as owning it. Title passing gradually describes a diminishing Musharaka, and a resale at a higher price is a Murabaha, neither of which is an Ijara.
Where the marks go on this paper
Two elements decide this paper. Equities/Stocks is nine marks on ordinary and preference shares and the rights attached to each, primary issuance and listing, order-driven and quote-driven trading, depositary receipts, indices, dividends, and the corporate actions candidates most often reverse: rights issues against bonus issues. It is the largest single element and the one worth over-preparing.
Bonds is seven, and it is the element that most often decides a borderline paper. Government and corporate issuance, coupon and redemption structures, the relationship between a bond price and its yield, credit ratings and what a downgrade does to a price, and the inflation and liquidity risks sitting behind all of it. It is also the part of the syllabus that behaves like arithmetic rather than memory.
Investment Funds is six and turns almost entirely on telling one fund structure from another: open-ended against closed-ended, the roles around a fund, and how pricing and charges work. Other Markets and Investments is five, on property, commodities and foreign exchange. Regulation and Ethics is another five, on financial crime, money laundering, insider dealing and market abuse, and the standards expected of an individual.
The Economic Environment, Derivatives and Other Financial Products are four each, and Introduction and Financial Advice are three each. That is 18 marks across five short elements, more than a third of the paper, and none of them is deep enough to need a second evening. Candidates lose those marks by skipping the small elements, not by finding them hard.
How to use your result
Treat 70% as a practice threshold, not a readiness promise. A stronger signal is a run of timed scores above the threshold with no element repeatedly falling behind. On a 50-question paper each question is two percentage points, so three careless answers are the difference between 35 and 32. Equities/Stocks and Bonds are 16 of the 50 between them, and if both are under 70% the total rarely recovers. No mock score can predict an individual result.
Use the answer review to understand each miss, then revisit the relevant part of the International Introduction to Securities & Investment exam guide. To drill a single topic rather than sit a whole paper, start with the free International Introduction to Securities & Investment practice questions.
Looking for official material? International Introduction to Securities & Investment past papers: what actually exists explains what CISI actually publishes and how to combine it with question practice. For more full papers, see the paid plans, from £59.
Independent practice material: PasskeyPrep is not affiliated with, endorsed by or accredited by the Chartered Institute for Securities & Investment. These questions were written independently against the syllabus. They are not copied from a live CISI exam or official past paper.
Frequently asked questions
Is this International Introduction to Securities & Investment mock exam really free?
Yes. All 50 questions are free, with no account, email address or card. Submit and you get a weighted score, a ten-element breakdown and an explanation for every answer.
Does this mock match the real exam format?
It uses 50 questions, a 60-minute timer, a 70% practice threshold and the element weightings set out for the paper. The questions are original PasskeyPrep practice material, not the CISI examination platform or official exam questions. PasskeyPrep is an independent study tool, not affiliated with, endorsed by, or accredited by the Chartered Institute for Securities & Investment.
Is this the same as the UK Introduction to Securities & Investment?
No. This is the international paper, written against workbook edition 18. It has a different workbook and a different examiner from the UK unit, and its syllabus is international rather than UK-centred, so a UK question bank will leave gaps. Check which of the two your booking is for before you start revising.
Who sits this paper?
It is the international foundation unit of the CISI Level 3 Certificate in Investment Operations, sat all over the world and often as a first qualification, in many cases not in the candidate's first language. It is common in the Gulf and is used as a regulatory qualification in several markets, so check what your own regulator or employer asks for before you book.
Turn the element breakdown into a study plan.
Get the full International Introduction question bank of 500 questions, more timed mocks, 56 study-note sections, 479 flashcards and weak-spot tracking as part of a paid pass: £59 for this paper, or £89 for all fourteen.