Mock Test 1 - TheMFCentral

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NISM V-A Mock Test 1

NISM V-A Mock Test 1

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

1 / 50

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

policy of diversification

asset allocation pattern

the specific securities in which the fund will invest

the type of securities in which the scheme will invest principally

2 / 50

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

42 days

one week

six weeks

one month

3 / 50

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

Every Quarter

Every Hour

Every Month

Every Day

4 / 50

Of the following fund types the highest risk is associated with

Gilt Funds

Equity Growth Funds

Balanced Funds

Debt Funds

5 / 50

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

yield spread

yield plus

yield extra

yield premium

6 / 50

A funds NAV is affected by

units sold or redeemed

valuation of all investment securities held

all of the above

Purchase and sale of investment securities

7 / 50

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 capitalisation and dividend

Market price and face value

Market price and earning per share

8 / 50

A compliance officer

stands guarantee to the information contained in the offer document

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

cannot be appointed by the AMC

belongs to SEBI

9 / 50

The custodian of a mutual fund:

not required to be registered with SEBI

is appointed for safekeeping of securities

need not be an entity independent of the sponsors

does not give or receive deliveries of physical securities

10 / 50

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

2 fiscal years

six months

one fiscal year

3 fiscal years

11 / 50

A put provision in a debt issue allows

issuers to redeem debt prior to maturity

investors to extend the tenure of debt

investor to put away the certificates in safe deposit vaults

investors to redeem debt prior to maturity

12 / 50

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

13 / 50

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

inflation risk

reinvestment risk

interest-rate risk

call risk

14 / 50

The offer document is not a legal document

True

False

15 / 50

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

dividend yield

Current market value of each share

Face value of each share

Rs.10

16 / 50

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

17 / 50

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 very high quality only

in short-term securities

18 / 50

A better performance than the return on index
is given by

an active fund manager

non fund manager

passive fund manager

all fund managers

19 / 50

The maximum load that a fund can charges determined by the

AMC

Distribution Agents based on demand for the Fund

SEBI

AMFI

20 / 50

The entity that SEBI does not regulate is

non-banking finance companies

stock exchanges

mutual funds

share registrars

21 / 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%

34.6%

6.0%

37.5%

22 / 50

Equity derivative instruments are

shares

contracts

notes

bonds

23 / 50

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

interest bearing

zero coupon bonds

paying interest at a floating rate

none of the above

24 / 50

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

annually

when actually paid

quarterly

on a day to day basis

25 / 50

The following need not be covered in a Key Information Memorandum

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

Opening, Closing and earliest Closing Date of the offer

Risk Factors

Disclaimer Clause

26 / 50

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

22%

12%

10%

2%

27 / 50

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

PSU Bonds

Government Securities

T-Bills

Corporate Bonds

28 / 50

A high turnover rate for a fund indicates

high transaction costs

greater efficiency

high returns to the investor

a rising market

29 / 50

Commercial Paper is issued by Corporate bodies

to pay dividend

to meet short-term working capital requirements

to retire long term debt

to finance the acquisition of long term capital assets

30 / 50

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

back to the fund

to a special trust at NAV

on stock exchange where the fund is listed

31 / 50

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. 2015

Rs. 2030

Rs. 2000

32 / 50

The highest authority among the following is
the

RBI

Company Law Board

SEBI

Ministry of Finance

33 / 50

A fixed term plan series is

A Closed ended fund

A Fixed term Bank Deposit

An Open-ended fund

A Fixed Term Corporate Bond

34 / 50

The trust that manages a mutual fund is
appointed by

The Finance Ministry

SEBI

The sponsor of that mutual fund

RBI

35 / 50

NAVs of equity funds are not affected by

Happenings in the companies in which the fund has invested

real estate prices

Stock market movements

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

36 / 50

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

Economy stocks

Growth stocks

Cyclical stocks

Value stocks

37 / 50

The AMC of a mutual fund cannot

cannot invest the funds in government paper

cannot invest the funds in securities

act as a trustee of more than one mutual fund

undertake advisory services or financial consulting

38 / 50

An Open-ended mutual fund is one that has:

an option to invest in any kind of securities

units available for sale and repurchase at all times

an upper limit of NAV

fixed fund size

39 / 50

Units from an open-ended mutual fund are bought

from the fund itself

from AMFI

on a stock exchange

from a stock broker

40 / 50

The greatest potential for growth in capital is offered by

Debt funds

Gilt funds

Balanced funds

Growth funds

41 / 50

Technical analysis guides the decision on

none of the above

whether company's technical personnel are adequately qualified

the right time to buy or sell

whether to buy or sell

42 / 50

Issuing and redeeming units of a mutual
fund is the role

the trustees

the custodian

the transfer agent

the bankers

43 / 50

A close-ended mutual fund has a fixed:

NAV

Number of Distributor

Rate of Return

Fund Size

44 / 50

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

none of the above

Total Return with reinvestment

NAV Change

Total Return

45 / 50

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

True

False

46 / 50

A mutual fund owned by

The Government of India

AMFI

SEBI

All its investor

47 / 50

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

Yes, a test conducted by SEBI

a Post Graduate university course

No

Yes, a test conducted by AMFI

48 / 50

'Key Information Memorandum' is

an abridged version of the offer document

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

Annual Report of the AMC

49 / 50

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

book closure date

record date

valuation date

computation date

50 / 50

Shares of companies with large capital market
capitalisation

have greater growth potentia

are not available

none of the above

are more liquid

Your score is

The average score is 59%

0%

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

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

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

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