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

Balanced Funds

Equity Growth Funds

Gilt Funds

Debt Funds

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2. 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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3. 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

policy of diversification

the type of securities in which the scheme will invest principally

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

six weeks

one week

one month

42 days

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

when actually paid

on a day to day basis

quarterly

annually

6 / 50

6. A put provision in a debt issue allows

investors to extend the tenure of debt

issuers to redeem debt prior to maturity

investors to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

7 / 50

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

Market price and earning per share

Market price and face value

Market price and dividend

Market capitalisation and dividend

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8. 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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9. A fixed term plan series is

A Closed ended fund

A Fixed Term Corporate Bond

An Open-ended fund

A Fixed term Bank Deposit

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10. The custodian of a mutual fund:

does not give or receive deliveries of physical securities

is appointed for safekeeping of securities

need not be an entity independent of the sponsors

not required to be registered with SEBI

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

Rs. 2015

Rs. 1985

Rs. 2000

Rs. 2030

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13. The entity that SEBI does not regulate is

stock exchanges

mutual funds

non-banking finance companies

share registrars

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14. Equity derivative instruments are

contracts

bonds

notes

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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%

37.5%

34.6%

6.0%

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

AMC

Distribution Agents based on demand for the Fund

AMFI

SEBI

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

Total Return

Total Return with reinvestment

none of the above

NAV Change

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18. Technical analysis guides the decision on

whether to buy or sell

the right time to buy or sell

whether company's technical personnel are adequately qualified

none of the above

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19. '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

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20. A high turnover rate for a fund indicates

high transaction costs

high returns to the investor

greater efficiency

a rising market

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21. NAVs of equity funds are not affected by

Stock market movements

Happenings in the companies in which the fund has invested

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

real estate prices

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22. The highest authority among the following is
the

SEBI

Company Law Board

RBI

Ministry of Finance

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

T-Bills

Corporate Bonds

PSU Bonds

Government Securities

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

zero coupon bonds

paying interest at a floating rate

none of the above

interest bearing

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

Rs.10

dividend yield

Current market value of each share

Face value of each share

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

an equity shareholder in a Company

a director in a Company

Promoter of a Company

the Chief Executive of a Company

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

in Government Securities only

in short-term securities

in very high quality only

in instruments issued by companies with a sound track record

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

one fiscal year

2 fiscal years

six months

3 fiscal years

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29. The AMC of a mutual fund cannot

undertake advisory services or financial consulting

act as a trustee of more than one mutual fund

cannot invest the funds in government paper

cannot invest the funds in securities

30 / 50

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

on a stock exchange

from AMFI

from a stock broker

from the fund itself

31 / 50

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

True

False

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

Balanced funds

Growth funds

Debt funds

Gilt funds

33 / 50

33. Commercial Paper is issued by Corporate bodies

to retire long term debt

to finance the acquisition of long term capital assets

to pay dividend

to meet short-term working capital requirements

34 / 50

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

the transfer agent

the bankers

the custodian

the trustees

35 / 50

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

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

Risk Factors

Opening, Closing and earliest Closing Date of the offer

Disclaimer Clause

36 / 50

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

redeem the debt before maturity

redeem the debt on maturity

extend the tenure of the debt

call out the names of the investors

37 / 50

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

Fund Size

Rate of Return

NAV

Number of Distributor

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38. 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

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39. 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 a special trust at NAV

back to the fund

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

40 / 50

40. Shares of companies with large capital market
capitalisation

are more liquid

are not available

none of the above

have greater growth potentia

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

reinvestment risk

inflation risk

interest-rate risk

call risk

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42. A mutual fund owned by

All its investor

SEBI

AMFI

The Government of India

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

an active fund manager

all fund managers

passive fund manager

non fund manager

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

yield premium

yield spread

yield extra

yield plus

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45. A funds NAV is affected by

all of the above

Purchase and sale of investment securities

valuation of all investment securities held

units sold or redeemed

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

The Finance Ministry

The sponsor of that mutual fund

RBI

SEBI

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47. A compliance officer

cannot be appointed by the AMC

stands guarantee to the information contained in the offer document

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

belongs to SEBI

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

fixed fund size

an option to invest in any kind of securities

units available for sale and repurchase at all times

an upper limit of NAV

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49. The offer document is not a legal document

True

False

50 / 50

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

Every Hour

Every Quarter

Every Day

Every Month

Your score is

The average score is 59%

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This mock test will help you familiarize yourself with the exam format, assess your knowledge, and identify areas that may need further study.

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

For the latest and most accurate information, please visit the NISM website at https://certifications.nism.ac.in/nismaol/.