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 fixed term plan series is

A Closed ended fund

An Open-ended fund

A Fixed term Bank Deposit

A Fixed Term Corporate Bond

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2. A funds NAV is affected by

Purchase and sale of investment securities

units sold or redeemed

all of the above

valuation of all investment securities held

3 / 50

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

the transfer agent

the bankers

the trustees

the custodian

4 / 50

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

in Government Securities only

in instruments issued by companies with a sound track record

in short-term securities

in very high quality only

5 / 50

5. 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

back to the fund

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

to a special trust at NAV

6 / 50

6. 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

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7. 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

8 / 50

8. A put provision in a debt issue allows

investor to put away the certificates in safe deposit vaults

issuers to redeem debt prior to maturity

investors to redeem debt prior to maturity

investors to extend the tenure of debt

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9. Commercial Paper is issued by Corporate bodies

to retire long term debt

to meet short-term working capital requirements

to finance the acquisition of long term capital assets

to pay dividend

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10. Shares of companies with large capital market
capitalisation

are more liquid

have greater growth potentia

are not available

none of the above

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

Distribution Agents based on demand for the Fund

AMFI

SEBI

AMC

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12. 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

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

Every Day

Every Quarter

Every Hour

Every Month

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

one week

one month

42 days

six weeks

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

Growth stocks

Value stocks

Economy stocks

Cyclical stocks

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

on a day to day basis

quarterly

when actually paid

annually

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

yield plus

yield premium

yield extra

yield spread

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

NAV

Rate of Return

Number of Distributor

Fund Size

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

on a stock exchange

from AMFI

from the fund itself

from a stock broker

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

extend the tenure of the debt

redeem the debt before maturity

call out the names of the investors

redeem the debt on maturity

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

Corporate Bonds

PSU Bonds

Government Securities

T-Bills

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22. 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 capitalisation and dividend

Market price and face value

Market price and dividend

23 / 50

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

non fund manager

passive fund manager

an active fund manager

all fund managers

24 / 50

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

an equity shareholder in a Company

Promoter of a Company

the Chief Executive of a Company

a director in a Company

25 / 50

25. Technical analysis guides the decision on

none of the above

whether to buy or sell

whether company's technical personnel are adequately qualified

the right time to buy or sell

26 / 50

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

False

True

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

Growth funds

Balanced funds

Gilt funds

Debt funds

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

six months

2 fiscal years

3 fiscal years

one fiscal year

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29. The offer document is not a legal document

True

False

30 / 50

30. 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

31 / 50

31. The highest authority among the following is
the

SEBI

Ministry of Finance

RBI

Company Law Board

32 / 50

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

an upper limit of NAV

an option to invest in any kind of securities

fixed fund size

units available for sale and repurchase at all times

33 / 50

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

NAV Change

Total Return with reinvestment

Total Return

none of the above

34 / 50

34. A compliance officer

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

stands guarantee to the information contained in the offer document

cannot be appointed by the AMC

belongs to SEBI

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 high turnover rate for a fund indicates

greater efficiency

a rising market

high returns to the investor

high transaction costs

37 / 50

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

record date

computation date

valuation date

book closure date

38 / 50

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

the specific securities in which the fund will invest

the type of securities in which the scheme will invest principally

policy of diversification

asset allocation pattern

39 / 50

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

Equity Growth Funds

Debt Funds

Gilt Funds

Balanced Funds

40 / 50

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

The Finance Ministry

The sponsor of that mutual fund

SEBI

RBI

41 / 50

41. The entity that SEBI does not regulate is

share registrars

non-banking finance companies

stock exchanges

mutual funds

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

call risk

interest-rate risk

reinvestment risk

inflation risk

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

12%

10%

22%

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44. Equity derivative instruments are

contracts

bonds

notes

45 / 50

45. A mutual fund owned by

SEBI

The Government of India

AMFI

All its investor

46 / 50

46. The custodian of a mutual fund:

need not be an entity independent of the sponsors

is appointed for safekeeping of securities

does not give or receive deliveries of physical securities

not required to be registered with SEBI

47 / 50

47. NAVs of equity funds are not affected by

Stock market movements

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

Happenings in the companies in which the fund has invested

real estate prices

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48. 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. 2030

Rs. 2015

Rs. 2000

49 / 50

49. 'Key Information Memorandum' is

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

an abridged version of the offer document

Annual Report of the AMC

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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

40.6%

6.0%

34.6%

37.5%

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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