Mock Test 1 - TheMFCentral

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NISM V-A Mock Test 1

NISM V-A Mock Test 1

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

1 / 50

The greatest potential for growth in capital is offered by

Balanced funds

Growth funds

Gilt funds

Debt funds

2 / 50

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

Market price and dividend

Market capitalisation and dividend

Market price and face value

Market price and earning per share

3 / 50

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

interest-rate risk

reinvestment risk

inflation risk

call risk

4 / 50

The AMC of a mutual fund cannot

cannot invest the funds in government paper

cannot invest the funds in securities

act as a trustee of more than one mutual fund

undertake advisory services or financial consulting

5 / 50

Units from an open-ended mutual fund are bought

on a stock exchange

from a stock broker

from the fund itself

from AMFI

6 / 50

A put provision in a debt issue allows

investors to extend the tenure of debt

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

7 / 50

A call provision in a debt issue allows the issuer to

redeem the debt on maturity

extend the tenure of the debt

call out the names of the investors

redeem the debt before maturity

8 / 50

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

quarterly

annually

on a day to day basis

when actually paid

9 / 50

A funds NAV is affected by

valuation of all investment securities held

all of the above

Purchase and sale of investment securities

units sold or redeemed

10 / 50

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

yield extra

yield spread

yield plus

yield premium

11 / 50

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

Total Return

none of the above

Total Return with reinvestment

NAV Change

12 / 50

A close-ended mutual fund has a fixed:

Number of Distributor

NAV

Rate of Return

Fund Size

13 / 50

Issuing and redeeming units of a mutual
fund is the role

the custodian

the transfer agent

the bankers

the trustees

14 / 50

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

six weeks

42 days

one week

one month

15 / 50

The offer document is not a legal document

True

False

16 / 50

Equity derivative instruments are

contracts

notes

shares

bonds

17 / 50

A better performance than the return on index
is given by

all fund managers

an active fund manager

passive fund manager

non fund manager

18 / 50

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

the specific securities in which the fund will invest

asset allocation pattern

the type of securities in which the scheme will invest principally

policy of diversification

19 / 50

A compliance officer

cannot be appointed by the AMC

belongs to SEBI

stands guarantee to the information contained in the offer document

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

20 / 50

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

34.6%

6.0%

40.6%

37.5%

21 / 50

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

Cyclical stocks

Value stocks

Economy stocks

Growth stocks

22 / 50

The sponsor of a mutual fund may be
compared to

the Chief Executive of a Company

an equity shareholder in a Company

a director in a Company

Promoter of a Company

23 / 50

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

on stock exchange where the fund is listed

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

back to the fund

to a special trust at NAV

24 / 50

Of the following fund types the highest risk is associated with

Equity Growth Funds

Gilt Funds

Debt Funds

Balanced Funds

25 / 50

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

Current market value of each share

Rs.10

Face value of each share

dividend yield

26 / 50

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

Rs. 1985

Rs. 2015

Rs. 2030

Rs. 2000

27 / 50

The custodian of a mutual fund:

need not be an entity independent of the sponsors

not required to be registered with SEBI

does not give or receive deliveries of physical securities

is appointed for safekeeping of securities

28 / 50

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

record date

valuation date

book closure date

computation date

29 / 50

An Open-ended mutual fund is one that has:

an option to invest in any kind of securities

units available for sale and repurchase at all times

fixed fund size

an upper limit of NAV

30 / 50

Commercial Paper is issued by Corporate bodies

to retire long term debt

to pay dividend

to meet short-term working capital requirements

to finance the acquisition of long term capital assets

31 / 50

The following need not be covered in a Key Information Memorandum

Opening, Closing and earliest Closing Date of the offer

Disclaimer Clause

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

Risk Factors

32 / 50

'Key Information Memorandum' is

a sheet containing historical NAVs of other fund schemes

an abridged version of the offer document

Annual Report of the AMC

the Memorandum & Articles of Association of the AMC

33 / 50

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

False

True

34 / 50

A Gilt Fund is a special type of fund that invests

in very high quality only

in Government Securities only

in instruments issued by companies with a sound track record

in short-term securities

35 / 50

The trust that manages a mutual fund is
appointed by

RBI

The Finance Ministry

SEBI

The sponsor of that mutual fund

36 / 50

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

No

37 / 50

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

Every Month

Every Quarter

Every Day

Every Hour

38 / 50

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

3 fiscal years

one fiscal year

six months

2 fiscal years

39 / 50

Shares of companies with large capital market
capitalisation

have greater growth potentia

are not available

are more liquid

none of the above

40 / 50

A mutual fund owned by

The Government of India

AMFI

All its investor

SEBI

41 / 50

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

Corporate Bonds

T-Bills

Government Securities

PSU Bonds

42 / 50

The entity that SEBI does not regulate is

share registrars

non-banking finance companies

mutual funds

stock exchanges

43 / 50

The highest authority among the following is
the

Company Law Board

SEBI

Ministry of Finance

RBI

44 / 50

The maximum load that a fund can charges determined by the

Distribution Agents based on demand for the Fund

AMC

AMFI

SEBI

45 / 50

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

46 / 50

NAVs of equity funds are not affected by

real estate prices

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

Happenings in the companies in which the fund has invested

Stock market movements

47 / 50

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

interest bearing

zero coupon bonds

none of the above

paying interest at a floating rate

48 / 50

A fixed term plan series is

A Fixed term Bank Deposit

An Open-ended fund

A Closed ended fund

A Fixed Term Corporate Bond

49 / 50

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

12%

2%

10%

22%

50 / 50

A high turnover rate for a fund indicates

high transaction costs

a rising market

greater efficiency

high returns to the investor

Your score is

The average score is 60%

0%

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

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