Mock Test 1 - TheMFCentral

NISM V-A Mock Test 1

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

1 / 50

1. Technical analysis guides the decision on

whether to buy or sell

whether company's technical personnel are adequately qualified

the right time to buy or sell

none of the above

2 / 50

2. The entity that SEBI does not regulate is

non-banking finance companies

stock exchanges

mutual funds

share registrars

3 / 50

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

the Chief Executive of a Company

Promoter of a Company

an equity shareholder in a Company

a director in a Company

4 / 50

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

paying interest at a floating rate

none of the above

zero coupon bonds

interest bearing

5 / 50

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

from AMFI

from a stock broker

on a stock exchange

from the fund itself

6 / 50

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

Every Day

Every Quarter

Every Month

Every Hour

7 / 50

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

Distribution Agents based on demand for the Fund

AMFI

AMC

SEBI

8 / 50

8. 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

34.6%

6.0%

40.6%

37.5%

9 / 50

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

Rs.10

dividend yield

Face value of each share

Current market value of each share

10 / 50

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

book closure date

record date

valuation date

computation date

11 / 50

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

NAV Change

Total Return

none of the above

Total Return with reinvestment

12 / 50

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

the specific securities in which the fund will invest

policy of diversification

asset allocation pattern

the type of securities in which the scheme will invest principally

13 / 50

13. A put provision in a debt issue allows

investor to put away the certificates in safe deposit vaults

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

investors to extend the tenure of debt

14 / 50

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

Balanced Funds

Gilt Funds

Equity Growth Funds

Debt Funds

15 / 50

15. 'Key Information Memorandum' is

the Memorandum & Articles of Association of the AMC

a sheet containing historical NAVs of other fund schemes

an abridged version of the offer document

Annual Report of the AMC

16 / 50

16. A mutual fund owned by

AMFI

All its investor

SEBI

The Government of India

17 / 50

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

back to the fund

on stock exchange where the fund is listed

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

to a special trust at NAV

18 / 50

18. Commercial Paper is issued by Corporate bodies

to retire long term debt

to pay dividend

to meet short-term working capital requirements

to finance the acquisition of long term capital assets

19 / 50

19. 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

20 / 50

20. NAVs of equity funds are not affected by

Happenings in the companies in which the fund has invested

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

Stock market movements

real estate prices

21 / 50

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

in instruments issued by companies with a sound track record

in Government Securities only

in short-term securities

in very high quality only

22 / 50

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

RBI

SEBI

The sponsor of that mutual fund

The Finance Ministry

23 / 50

23. A compliance officer

belongs to SEBI

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

24 / 50

24. 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%

25 / 50

25. Shares of companies with large capital market
capitalisation

are more liquid

have greater growth potentia

none of the above

are not available

26 / 50

26. The AMC of a mutual fund cannot

cannot invest the funds in securities

act as a trustee of more than one mutual fund

cannot invest the funds in government paper

undertake advisory services or financial consulting

27 / 50

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

non fund manager

all fund managers

an active fund manager

passive fund manager

28 / 50

28. A funds NAV is affected by

units sold or redeemed

Purchase and sale of investment securities

all of the above

valuation of all investment securities held

29 / 50

29. 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

Yes, a test conducted by SEBI

a Post Graduate university course

30 / 50

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

Value stocks

Cyclical stocks

Growth stocks

Economy stocks

31 / 50

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

call out the names of the investors

extend the tenure of the debt

redeem the debt on maturity

redeem the debt before maturity

32 / 50

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

one month

six weeks

one week

42 days

33 / 50

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

Corporate Bonds

PSU Bonds

T-Bills

Government Securities

34 / 50

34. Equity derivative instruments are

bonds

contracts

notes

35 / 50

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

False

True

36 / 50

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

Opening, Closing and earliest Closing Date of the offer

Disclaimer Clause

Risk Factors

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

37 / 50

37. A high turnover rate for a fund indicates

a rising market

greater efficiency

high transaction costs

high returns to the investor

38 / 50

38. The highest authority among the following is
the

RBI

SEBI

Ministry of Finance

Company Law Board

39 / 50

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

Balanced funds

Gilt funds

Growth funds

Debt funds

40 / 50

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

the trustees

the transfer agent

the bankers

the custodian

41 / 50

41. A fixed term plan series is

An Open-ended fund

A Closed ended fund

A Fixed term Bank Deposit

A Fixed Term Corporate Bond

42 / 50

42. 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 dividend

Market price and face value

Market capitalisation and dividend

43 / 50

43. The offer document is not a legal document

True

False

44 / 50

44. 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

45 / 50

45. 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

46 / 50

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

on a day to day basis

annually

when actually paid

quarterly

47 / 50

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

interest-rate risk

call risk

reinvestment risk

inflation risk

48 / 50

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

yield premium

yield extra

yield plus

yield spread

49 / 50

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

Number of Distributor

NAV

Rate of Return

Fund Size

50 / 50

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

3 fiscal years

2 fiscal years

one fiscal year

six months

Your score is

The average score is 60%

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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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