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. Units from an open-ended mutual fund are bought

from a stock broker

from the fund itself

on a stock exchange

from AMFI

2 / 50

2. The entity that SEBI does not regulate is

stock exchanges

mutual funds

non-banking finance companies

share registrars

3 / 50

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

Growth stocks

Value stocks

Cyclical stocks

Economy stocks

4 / 50

4. The AMC of a mutual fund cannot

undertake advisory services or financial consulting

cannot invest the funds in government paper

cannot invest the funds in securities

act as a trustee of more than one mutual fund

5 / 50

5. 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

6 / 50

6. A funds NAV is affected by

Purchase and sale of investment securities

valuation of all investment securities held

all of the above

units sold or redeemed

7 / 50

7. The custodian of a mutual fund:

is appointed for safekeeping of securities

does not give or receive deliveries of physical securities

need not be an entity independent of the sponsors

not required to be registered with SEBI

8 / 50

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

redeem the debt before maturity

redeem the debt on maturity

call out the names of the investors

extend the tenure of the debt

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

asset allocation pattern

the specific securities in which the fund will invest

the type of securities in which the scheme will invest principally

policy of diversification

10 / 50

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

a Post Graduate university course

Yes, a test conducted by SEBI

Yes, a test conducted by AMFI

11 / 50

11. Technical analysis guides the decision on

whether company's technical personnel are adequately qualified

the right time to buy or sell

none of the above

whether to buy or sell

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

AMC

SEBI

AMFI

Distribution Agents based on demand for the Fund

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

Debt Funds

Gilt Funds

Balanced Funds

Equity Growth Funds

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

one month

one week

six weeks

42 days

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15. 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

40.6%

6.0%

37.5%

34.6%

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

record date

valuation date

computation date

book closure date

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17. Equity derivative instruments are

notes

contracts

bonds

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

interest bearing

paying interest at a floating rate

none of the above

zero coupon bonds

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

The sponsor of that mutual fund

SEBI

The Finance Ministry

RBI

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

Fund Size

Rate of Return

NAV

Number of Distributor

21 / 50

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

the bankers

the trustees

the custodian

the transfer agent

22 / 50

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

yield premium

yield extra

yield spread

yield plus

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23. A put provision in a debt issue allows

investors to extend the tenure of debt

investors to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

issuers to redeem debt prior to maturity

24 / 50

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

Promoter of a Company

the Chief Executive of a Company

a director in a Company

an equity shareholder in a Company

25 / 50

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

Every Quarter

Every Day

Every Month

Every Hour

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

interest-rate risk

call risk

inflation risk

reinvestment risk

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27. The highest authority among the following is
the

Company Law Board

Ministry of Finance

SEBI

RBI

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28. 'Key Information Memorandum' is

Annual Report of the AMC

an abridged version of the offer document

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

29 / 50

29. A high turnover rate for a fund indicates

a rising market

greater efficiency

high returns to the investor

high transaction costs

30 / 50

30. A mutual fund owned by

SEBI

The Government of India

AMFI

All its investor

31 / 50

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

False

True

32 / 50

32. Commercial Paper is issued by Corporate bodies

to meet short-term working capital requirements

to pay dividend

to retire long term debt

to finance the acquisition of long term capital assets

33 / 50

33. The offer document is not a legal document

True

False

34 / 50

34. A fixed term plan series is

A Closed ended fund

An Open-ended fund

A Fixed term Bank Deposit

A Fixed Term Corporate Bond

35 / 50

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

six months

one fiscal year

3 fiscal years

2 fiscal years

36 / 50

36. 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

37 / 50

37. NAVs of equity funds are not affected by

Stock market movements

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

real estate prices

Happenings in the companies in which the fund has invested

38 / 50

38. Shares of companies with large capital market
capitalisation

are not available

have greater growth potentia

are more liquid

none of the above

39 / 50

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

fixed fund size

an upper limit of NAV

an option to invest in any kind of securities

units available for sale and repurchase at all times

40 / 50

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

Debt funds

Balanced funds

Gilt funds

Growth funds

41 / 50

41. A compliance officer

cannot be appointed by the AMC

stands guarantee to the information contained in the offer document

belongs to SEBI

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

42 / 50

42. 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

43 / 50

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

all fund managers

non fund manager

an active fund manager

passive fund manager

44 / 50

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

none of the above

NAV Change

Total Return with reinvestment

Total Return

45 / 50

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

22%

10%

12%

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

back to the fund

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

47 / 50

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

Rs. 2030

Rs. 2000

Rs. 1985

Rs. 2015

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48. 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 price and dividend

Market capitalisation and dividend

Market price and earning per share

49 / 50

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

dividend yield

Face value of each share

Current market value of each share

Rs.10

50 / 50

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

Government Securities

PSU Bonds

T-Bills

Corporate Bonds

Your score is

The average score is 59%

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

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