Mock Test 1 - TheMFCentral

NISM V-A Mock Test 1

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

1 / 50

1. The custodian of a mutual fund:

not required to be registered with SEBI

does not give or receive deliveries of physical securities

is appointed for safekeeping of securities

need not be an entity independent of the sponsors

2 / 50

2. 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

3 / 50

3. A compliance officer

stands guarantee to the information contained in the offer document

cannot be appointed by the AMC

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

belongs to SEBI

4 / 50

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

Rs.10

Current market value of each share

Face value of each share

dividend yield

5 / 50

5. The entity that SEBI does not regulate is

non-banking finance companies

mutual funds

share registrars

stock exchanges

6 / 50

6. 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

7 / 50

7. 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

to a special trust at NAV

back to the fund

on stock exchange where the fund is listed

8 / 50

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

the Chief Executive of a Company

Promoter of a Company

a director in a Company

an equity shareholder in a Company

9 / 50

9. The AMC of a mutual fund cannot

act as a trustee of more than one mutual fund

cannot invest the funds in securities

cannot invest the funds in government paper

undertake advisory services or financial consulting

10 / 50

10. 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

37.5%

34.6%

40.6%

6.0%

11 / 50

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

yield spread

yield premium

yield extra

yield plus

12 / 50

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

redeem the debt on maturity

redeem the debt before maturity

call out the names of the investors

extend the tenure of the debt

13 / 50

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

Government Securities

T-Bills

PSU Bonds

Corporate Bonds

14 / 50

14. A mutual fund owned by

AMFI

All its investor

SEBI

The Government of India

15 / 50

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

SEBI

Distribution Agents based on demand for the Fund

AMC

AMFI

16 / 50

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

the bankers

the custodian

the trustees

the transfer agent

17 / 50

17. NAVs of equity funds are not affected by

Happenings in the companies in which the fund has invested

real estate prices

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

Stock market movements

18 / 50

18. The highest authority among the following is
the

Company Law Board

SEBI

RBI

Ministry of Finance

19 / 50

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

annually

quarterly

on a day to day basis

when actually paid

20 / 50

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

Total Return with reinvestment

Total Return

none of the above

NAV Change

21 / 50

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

call risk

reinvestment risk

inflation risk

interest-rate risk

22 / 50

22. 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. 2015

Rs. 1985

23 / 50

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

six months

one fiscal year

2 fiscal years

3 fiscal years

24 / 50

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

Gilt Funds

Balanced Funds

Equity Growth Funds

Debt Funds

25 / 50

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

True

False

26 / 50

26. 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 AMFI

Yes, a test conducted by SEBI

27 / 50

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

valuation date

computation date

record date

book closure date

28 / 50

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

asset allocation pattern

policy of diversification

the specific securities in which the fund will invest

the type of securities in which the scheme will invest principally

29 / 50

29. A fixed term plan series is

An Open-ended fund

A Closed ended fund

A Fixed Term Corporate Bond

A Fixed term Bank Deposit

30 / 50

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

Every Quarter

Every Month

Every Day

Every Hour

31 / 50

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

Rate of Return

Fund Size

NAV

Number of Distributor

32 / 50

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

Disclaimer Clause

Opening, Closing and earliest Closing Date of the offer

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

Risk Factors

33 / 50

33. 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 dividend

Market price and earning per share

34 / 50

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

RBI

SEBI

The sponsor of that mutual fund

The Finance Ministry

35 / 50

35. Commercial Paper is issued by Corporate bodies

to finance the acquisition of long term capital assets

to retire long term debt

to meet short-term working capital requirements

to pay dividend

36 / 50

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

Economy stocks

Growth stocks

Value stocks

Cyclical stocks

37 / 50

37. Equity derivative instruments are

notes

contracts

bonds

38 / 50

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

an upper limit of NAV

fixed fund size

units available for sale and repurchase at all times

an option to invest in any kind of securities

39 / 50

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

paying interest at a floating rate

zero coupon bonds

none of the above

interest bearing

40 / 50

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

in Government Securities only

in short-term securities

in instruments issued by companies with a sound track record

in very high quality only

41 / 50

41. 'Key Information Memorandum' is

the Memorandum & Articles of Association of the AMC

a sheet containing historical NAVs of other fund schemes

Annual Report of the AMC

an abridged version of the offer document

42 / 50

42. Shares of companies with large capital market
capitalisation

none of the above

are not available

are more liquid

have greater growth potentia

43 / 50

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

Gilt funds

Balanced funds

Growth funds

Debt funds

44 / 50

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

from AMFI

on a stock exchange

from the fund itself

from a stock broker

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

10%

22%

12%

46 / 50

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

42 days

one month

six weeks

one week

47 / 50

47. A funds NAV is affected by

all of the above

valuation of all investment securities held

units sold or redeemed

Purchase and sale of investment securities

48 / 50

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

all fund managers

an active fund manager

non fund manager

passive fund manager

49 / 50

49. A high turnover rate for a fund indicates

greater efficiency

high transaction costs

high returns to the investor

a rising market

50 / 50

50. The offer document is not a legal document

True

False

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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