Free CISI IISI Mock Exam Questions 2026: 5 Sample Questions with Answers
Test your readiness with 5 free CISI IISI mock exam questions covering Bonds, Derivatives, Investment Funds, Regulation, and Other Financial Products — including worked calculations, each with a detailed explanation.
The best way to gauge whether you are ready for the CISI International Introduction to Securities & Investment (IISI) exam is to test yourself with realistic questions. With a pass rate of just 53%, honest self-assessment before exam day is essential — and choosing the right study materials makes all the difference.
Below are 5 free CISI IISI mock questions spanning several chapters, including two calculation questions with the full working shown. Try to answer each one before revealing the explanation.
🧠How to use these questions
Attempt each question first, then read the explanation — even for the ones you get right. For calculation questions, make sure you can reproduce the working, not just recognise the answer. That is exactly what the real exam tests.
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Question 1: Derivatives (Chapter 6)
Which type of contract accounts for the vast majority of outstanding derivatives?
A) Interest rate derivatives
B) Commodity contracts
C) Equity-linked contracts
D) Credit derivatives
Explanation: Interest rate derivatives — largely interest rate swaps — account for the vast majority of outstanding derivatives contracts by notional value.
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Question 2: Bonds (Chapter 4)
A bond with an 8% coupon is priced at $125 per $100 nominal. What is its flat yield?
A) 4%
B) 10%
C) 6.4%
D) 8%
Explanation (step by step):
1. Flat yield = (annual coupon ÷ clean price) × 100
2. The annual coupon is 8% of the £100 nominal = 8
3. Flat yield = (8 ÷ 125) × 100
4. = 0.064 × 100 = 6.4%
ExamPrep.ae shows the full working for every calculation question, so you learn the method — not just the answer.
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Question 3: Investment Funds (Chapter 7)
An investment trust's shares trade at £2.30 while the NAV per share is £2.00. What is the premium to NAV?
A) 13%
B) 7.5%
C) 30%
D) 15%
Explanation (step by step):
1. Premium = ((price − NAV) ÷ NAV) × 100
2. Price − NAV = £2.30 − £2.00 = £0.30
3. £0.30 ÷ £2.00 = 0.15
4. × 100 = 15% premium
ExamPrep.ae's Practice by Chapter mode lets you drill each of the 10 IISI chapters individually.
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Question 4: Regulation and Ethics (Chapter 8)
What are 'breeder' documents in the context of identity crime?
A) The annual report of a listed company
B) Certificates issued by a credit rating agency
C) Documents that allow the holder to apply for or obtain other documentation, building a profile that can satisfy basic customer due diligence
D) Documents that prove a firm is authorised
Explanation: Breeder documents let criminals obtain further documentation and build a 'history' that can pass basic customer due diligence (CDD) checks, facilitating identity fraud.
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Question 5: Other Financial Products (Chapter 9)
Which type of protection is particularly relevant for a consumer taking out a mortgage?
A) Business liability insurance
B) Mortgage payment protection cover (alongside life/term assurance)
C) Private medical insurance only
D) Household contents insurance only
Explanation: A mortgage borrower should consider mortgage payment protection (to cover repayments if they are unable to work), often alongside life or term assurance to repay the loan on death.
ExamPrep.ae's performance-by-chapter analytics show exactly where you stand against the 70% pass mark.
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How Did You Do?
If you found these challenging — especially the calculations — you are not alone. This is exactly the level of detail the real exam demands, and it is why the pass rate sits at just 53%. Five questions is only a taste; the full exam has 50 questions across all 10 chapters.
💡 Want hundreds more questions like these?
ExamPrep.ae's CISI IISI question bank covers all 10 chapters with detailed explanations, step-by-step working on every calculation, full timed simulations, and an AI Weakness Engine that targets your weak spots.
👉 Start CISI IISI PracticeYour Next Steps
- Learn the full strategy — Read our complete CISI IISI study guide
- Understand the difficulty — See why the pass rate is only 53%
- Practise the full bank — Start practising with ExamPrep.ae
ExamPrep.ae's Review Questions mode helps you review the questions you got wrong and lock in the concepts.
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