Mock Test 1 - TheMFCentral

NISM V-A Mock Test 1

NISM V-A (Mutual Fund Distributor Module) Exam | Mock Test 1

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1. A mutual fund owned by

SEBI

The Government of India

All its investor

AMFI

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2. Distribution and sales practices are only partly regulated by SEBI at present

True

False

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3. The highest authority among the following is
the

RBI

Ministry of Finance

SEBI

Company Law Board

4 / 50

4. When computing NAV of fund SEBI requires
accrual of major expenses to be accounted

quarterly

annually

when actually paid

on a day to day basis

5 / 50

5. Market capitalisation of a company is
calculated by multiplying the number of
outstanding shares by

Rs.10

Current market value of each share

dividend yield

Face value of each share

6 / 50

6. The AMC of a mutual fund cannot

cannot invest the funds in government paper

undertake advisory services or financial consulting

cannot invest the funds in securities

act as a trustee of more than one mutual fund

7 / 50

7. The maximum load that a fund can charges determined by the

Distribution Agents based on demand for the Fund

AMC

SEBI

AMFI

8 / 50

8. The following need not be covered in a Key Information Memorandum

Disclaimer Clause

Functions and responsibilities of the sponsor, trustees, AMC and Custodian responsibilities

Risk Factors

Opening, Closing and earliest Closing Date of the offer

9 / 50

9. Issuing and redeeming units of a mutual
fund is the role

the transfer agent

the custodian

the bankers

the trustees

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10. An investor in a closed-ended mutual fund can get his/her money back by selling his/her units

to the agent through which he/she subscribed to units of the fund

on stock exchange where the fund is listed

to a special trust at NAV

back to the fund

11 / 50

11. A compliance officer

stands guarantee to the information contained in the offer document

belongs to SEBI

cannot be appointed by the AMC

cannot certify that the AMC's legal and procedural obligations are fulfilled

12 / 50

12. The trust that manages a mutual fund is
appointed by

The Finance Ministry

The sponsor of that mutual fund

RBI

SEBI

13 / 50

13. A funds NAV is affected by

valuation of all investment securities held

Purchase and sale of investment securities

units sold or redeemed

all of the above

14 / 50

14. A call provision in a debt issue allows the issuer to

redeem the debt before maturity

extend the tenure of the debt

redeem the debt on maturity

call out the names of the investors

15 / 50

15. Commercial Paper is issued by Corporate bodies

to meet short-term working capital requirements

to retire long term debt

to finance the acquisition of long term capital assets

to pay dividend

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16. A close-ended mutual fund has a fixed:

Rate of Return

Fund Size

NAV

Number of Distributor

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17. A better performance than the return on index
is given by

non fund manager

passive fund manager

all fund managers

an active fund manager

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18. The entity that SEBI does not regulate is

mutual funds

stock exchanges

share registrars

non-banking finance companies

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19. Units from an open-ended mutual fund are bought

from a stock broker

from the fund itself

on a stock exchange

from AMFI

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20. An offer document contains an AMC's
investor grievance's history for the past

one fiscal year

six months

3 fiscal years

2 fiscal years

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21. 'Key Information Memorandum' is

Annual Report of the AMC

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

an abridged version of the offer document

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22. The NAV of each scheme should be updated on AMFI's Website

Every Hour

Every Quarter

Every Day

Every Month

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23. It may not be possible to reinvest interest received at the same rate as principal. This is known as

interest-rate risk

inflation risk

call risk

reinvestment risk

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24. If 10-year government securities Neil 10% and a 10-Year fixed deposit in a company yields 12%, the yield spread is

10%

12%

22%

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25. After dividend declaration, unit-holders are
entitled to receive dividend within

one week

42 days

six weeks

one month

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26. The investment policies listed out in the offer
document of a fund do not include

policy of diversification

asset allocation pattern

the type of securities in which the scheme will invest principally

the specific securities in which the fund will invest

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27. The Price/Earnings (P/E) Ratio is an important
measure of a company's anticipated
performance. It is calculated using:

Market price and face value

Market capitalisation and dividend

Market price and earning per share

Market price and dividend

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28. A fixed term plan series is

An Open-ended fund

A Fixed Term Corporate Bond

A Closed ended fund

A Fixed term Bank Deposit

29 / 50

29. Technical analysis guides the decision on

whether company's technical personnel are adequately qualified

none of the above

whether to buy or sell

the right time to buy or sell

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30. The greatest potential for growth in capital is offered by

Growth funds

Debt funds

Gilt funds

Balanced funds

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31. The most suitable measure of fund performance for all fund types is

none of the above

Total Return

Total Return with reinvestment

NAV Change

32 / 50

32. If the NAV of an open-ended fund was Rs.16 at the beginning of the year and Rs.22 after 13 months, the annualised change in NAV is

6.0%

37.5%

34.6%

40.6%

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33. The day on which NAV is calculated by a fund is known as

computation date

book closure date

record date

valuation date

34 / 50

34. A Gilt Fund is a special type of fund that invests

in instruments issued by companies with a sound track record

in very high quality only

in Government Securities only

in short-term securities

35 / 50

35. Are Mutual Fund agents/distributors in India
required to pass any examination to qualify to sell
Mutual Fund Units

Yes, a test conducted by AMFI

a Post Graduate university course

Yes, a test conducted by SEBI

36 / 50

36. A company whose earnings are strongly related to the state of economy is known as

Cyclical stocks

Economy stocks

Value stocks

Growth stocks

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37. Of the following fund types the highest risk is associated with

Balanced Funds

Equity Growth Funds

Debt Funds

Gilt Funds

38 / 50

38. The custodian of a mutual fund:

is appointed for safekeeping of securities

need not be an entity independent of the sponsors

does not give or receive deliveries of physical securities

not required to be registered with SEBI

39 / 50

39. A high turnover rate for a fund indicates

high returns to the investor

high transaction costs

greater efficiency

a rising market

40 / 50

40. NAVs of equity funds are not affected by

real estate prices

Happenings in the companies in which the fund has invested

Events affecting the industry/sector in which the fund has invested

Stock market movements

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41. An Open-ended mutual fund is one that has:

units available for sale and repurchase at all times

an upper limit of NAV

an option to invest in any kind of securities

fixed fund size

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42. A put provision in a debt issue allows

investor to put away the certificates in safe deposit vaults

investors to extend the tenure of debt

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

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43. In the wholesale debt market, the largest proportion of trading is seen in

Corporate Bonds

T-Bills

PSU Bonds

Government Securities

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44. The sponsor of a mutual fund may be
compared to

the Chief Executive of a Company

a director in a Company

Promoter of a Company

an equity shareholder in a Company

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45. The additional yield required to account for the risk of default by the borrower is known as

yield plus

yield premium

yield spread

yield extra

46 / 50

46. Debt securities bought at a discount to their face value are generally

none of the above

interest bearing

zero coupon bonds

paying interest at a floating rate

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47. The amount to buy 100 units of a scheme having a entry load of 1.5% and NAV of Rs. 20 each:

Rs. 2000

Rs. 1985

Rs. 2015

Rs. 2030

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48. The offer document is not a legal document

False

True

49 / 50

49. Shares of companies with large capital market
capitalisation

are more liquid

have greater growth potentia

are not available

none of the above

50 / 50

50. Equity derivative instruments are

bonds

notes

contracts

Your score is

The average score is 60%

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Good luck with your preparation for the NISM Series V-A exam!

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