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. 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%

6.0%

34.6%

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

to a special trust at NAV

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

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3. NAVs of equity funds are not affected by

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

Stock market movements

real estate prices

Happenings in the companies in which the fund has invested

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4. 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 price and face value

Market capitalisation and dividend

Market price and earning per share

5 / 50

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

computation date

book closure date

record date

valuation date

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6. 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

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7. Equity derivative instruments are

notes

bonds

contracts

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

Economy stocks

Cyclical stocks

Value stocks

Growth stocks

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

AMFI

SEBI

Distribution Agents based on demand for the Fund

AMC

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10. A high turnover rate for a fund indicates

a rising market

greater efficiency

high returns to the investor

high transaction costs

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

one month

six weeks

one week

42 days

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

Balanced funds

Debt funds

Gilt funds

Growth funds

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13. The custodian of a mutual fund:

does not give or receive deliveries of physical securities

not required to be registered with SEBI

need not be an entity independent of the sponsors

is appointed for safekeeping of securities

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14. 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. 2000

Rs. 2015

Rs. 2030

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15. 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

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16. The AMC of a mutual fund cannot

cannot invest the funds in securities

undertake advisory services or financial consulting

act as a trustee of more than one mutual fund

cannot invest the funds in government paper

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17. The highest authority among the following is
the

RBI

SEBI

Company Law Board

Ministry of Finance

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18. 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

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

an option to invest in any kind of securities

fixed fund size

an upper limit of NAV

units available for sale and repurchase at all times

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20. The entity that SEBI does not regulate is

share registrars

stock exchanges

mutual funds

non-banking finance companies

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

Government Securities

PSU Bonds

Corporate Bonds

T-Bills

22 / 50

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

none of the above

Total Return

Total Return with reinvestment

NAV Change

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

extend the tenure of the debt

redeem the debt on maturity

call out the names of the investors

redeem the debt before maturity

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

the transfer agent

the custodian

the bankers

the trustees

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25. 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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26. Technical analysis guides the decision on

none of the above

the right time to buy or sell

whether company's technical personnel are adequately qualified

whether to buy or sell

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

NAV

Rate of Return

Fund Size

Number of Distributor

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

when actually paid

quarterly

on a day to day basis

annually

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

True

False

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

yield spread

yield extra

yield plus

yield premium

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

in short-term securities

in instruments issued by companies with a sound track record

in Government Securities only

in very high quality only

32 / 50

32. The offer document is not a legal document

False

True

33 / 50

33. 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%

34 / 50

34. '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

35 / 50

35. Shares of companies with large capital market
capitalisation

none of the above

have greater growth potentia

are more liquid

are not available

36 / 50

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

Debt Funds

Equity Growth Funds

Gilt Funds

Balanced Funds

37 / 50

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

paying interest at a floating rate

interest bearing

zero coupon bonds

none of the above

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. 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

40 / 50

40. A mutual fund owned by

AMFI

All its investor

SEBI

The Government of India

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

from AMFI

on a stock exchange

from a stock broker

from the fund itself

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

Current market value of each share

dividend yield

Face value of each share

Rs.10

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

call risk

interest-rate risk

inflation risk

reinvestment risk

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

passive fund manager

all fund managers

non fund manager

an active fund manager

45 / 50

45. 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

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

Every Quarter

Every Hour

Every Month

Every Day

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

2 fiscal years

one fiscal year

six months

3 fiscal years

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48. A funds NAV is affected by

Purchase and sale of investment securities

valuation of all investment securities held

units sold or redeemed

all of the above

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

The sponsor of that mutual fund

The Finance Ministry

RBI

SEBI

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50. A put provision in a debt issue allows

investors to extend the tenure of debt

investor to put away the certificates in safe deposit vaults

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

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!

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