Mock Test 1 - TheMFCentral

NISM V-A Mock Test 1

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

1 / 50

1. 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 SEBI

Yes, a test conducted by AMFI

2 / 50

2. Shares of companies with large capital market
capitalisation

none of the above

are not available

are more liquid

have greater growth potentia

3 / 50

3. Technical analysis guides the decision on

the right time to buy or sell

none of the above

whether to buy or sell

whether company's technical personnel are adequately qualified

4 / 50

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

SEBI

RBI

The sponsor of that mutual fund

The Finance Ministry

5 / 50

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

yield plus

yield extra

yield spread

yield premium

6 / 50

6. 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

7 / 50

7. The custodian of a mutual fund:

need not be an entity independent of the sponsors

does not give or receive deliveries of physical securities

is appointed for safekeeping of securities

not required to be registered with SEBI

8 / 50

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

Distribution Agents based on demand for the Fund

AMFI

AMC

SEBI

9 / 50

9. A compliance officer

belongs to SEBI

cannot be appointed by the AMC

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

stands guarantee to the information contained in the offer document

10 / 50

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

on a day to day basis

when actually paid

quarterly

annually

11 / 50

11. The offer document is not a legal document

True

False

12 / 50

12. 'Key Information Memorandum' is

the Memorandum & Articles of Association of the AMC

Annual Report of the AMC

a sheet containing historical NAVs of other fund schemes

an abridged version of the offer document

13 / 50

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

in very high quality only

in Government Securities only

in short-term securities

in instruments issued by companies with a sound track record

14 / 50

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

Growth funds

Gilt funds

Debt funds

Balanced funds

15 / 50

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

book closure date

record date

valuation date

computation date

16 / 50

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

an option to invest in any kind of securities

an upper limit of NAV

units available for sale and repurchase at all times

fixed fund size

17 / 50

17. A mutual fund owned by

All its investor

AMFI

SEBI

The Government of India

18 / 50

18. A high turnover rate for a fund indicates

high returns to the investor

greater efficiency

high transaction costs

a rising market

19 / 50

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

one fiscal year

3 fiscal years

six months

2 fiscal years

20 / 50

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

one month

one week

six weeks

42 days

21 / 50

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

Growth stocks

Economy stocks

Value stocks

Cyclical stocks

22 / 50

22. 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

23 / 50

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

NAV

Rate of Return

Number of Distributor

Fund Size

24 / 50

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

PSU Bonds

T-Bills

Corporate Bonds

Government Securities

25 / 50

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

Debt Funds

Balanced Funds

Equity Growth Funds

Gilt Funds

26 / 50

26. Equity derivative instruments are

contracts

notes

bonds

27 / 50

27. A funds NAV is affected by

valuation of all investment securities held

Purchase and sale of investment securities

all of the above

units sold or redeemed

28 / 50

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

Every Day

Every Quarter

Every Hour

Every Month

29 / 50

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

the Chief Executive of a Company

an equity shareholder in a Company

Promoter of a Company

a director in a Company

30 / 50

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

interest bearing

paying interest at a floating rate

none of the above

zero coupon bonds

31 / 50

31. 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

32 / 50

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

the trustees

the bankers

the custodian

the transfer agent

33 / 50

33. A put provision in a debt issue allows

investors to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

issuers to redeem debt prior to maturity

investors to extend the tenure of debt

34 / 50

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

call risk

inflation risk

interest-rate risk

reinvestment risk

35 / 50

35. The amount to buy 100 units of a scheme having a entry load of 1.5% and NAV of Rs. 20 each:

Rs. 2015

Rs. 2000

Rs. 2030

Rs. 1985

36 / 50

36. 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%

37 / 50

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

redeem the debt before maturity

extend the tenure of the debt

redeem the debt on maturity

call out the names of the investors

38 / 50

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

from AMFI

from a stock broker

from the fund itself

on a stock exchange

39 / 50

39. 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

6.0%

40.6%

37.5%

34.6%

40 / 50

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

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

Disclaimer Clause

Opening, Closing and earliest Closing Date of the offer

Risk Factors

41 / 50

41. NAVs of equity funds are not affected by

Stock market movements

real estate prices

Happenings in the companies in which the fund has invested

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

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 dividend

Market price and face value

Market price and earning per share

Market capitalisation and dividend

43 / 50

43. The highest authority among the following is
the

Ministry of Finance

SEBI

RBI

Company Law Board

44 / 50

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

NAV Change

Total Return with reinvestment

Total Return

none of the above

45 / 50

45. 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

46 / 50

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

all fund managers

an active fund manager

non fund manager

passive fund manager

47 / 50

47. Commercial Paper is issued by Corporate bodies

to meet short-term working capital requirements

to finance the acquisition of long term capital assets

to pay dividend

to retire long term debt

48 / 50

48. The entity that SEBI does not regulate is

non-banking finance companies

mutual funds

share registrars

stock exchanges

49 / 50

49. A fixed term plan series is

A Closed ended fund

An Open-ended fund

A Fixed Term Corporate Bond

A Fixed term Bank Deposit

50 / 50

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

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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