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

Corporate Bonds

Government Securities

PSU Bonds

T-Bills

2 / 50

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

the Chief Executive of a Company

a director in a Company

an equity shareholder in a Company

Promoter of a Company

3 / 50

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

none of the above

NAV Change

Total Return with reinvestment

Total Return

4 / 50

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

one month

one week

42 days

six weeks

5 / 50

5. The entity that SEBI does not regulate is

mutual funds

non-banking finance companies

share registrars

stock exchanges

6 / 50

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

in short-term securities

in Government Securities only

in instruments issued by companies with a sound track record

in very high quality only

7 / 50

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

none of the above

paying interest at a floating rate

interest bearing

zero coupon bonds

8 / 50

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

valuation date

record date

computation date

book closure date

9 / 50

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

inflation risk

interest-rate risk

reinvestment risk

call risk

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10. 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 a special trust at NAV

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

11 / 50

11. A fixed term plan series is

A Fixed Term Corporate Bond

An Open-ended fund

A Fixed term Bank Deposit

A Closed ended fund

12 / 50

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

Fund Size

Number of Distributor

NAV

Rate of Return

13 / 50

13. Technical analysis guides the decision on

whether company's technical personnel are adequately qualified

none of the above

whether to buy or sell

the right time to buy or sell

14 / 50

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

Balanced Funds

Gilt Funds

Debt Funds

Equity Growth Funds

15 / 50

15. 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%

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16. The Price/Earnings (P/E) Ratio is an important
measure of a company's anticipated
performance. It is calculated using:

Market price and face value

Market price and earning per share

Market price and dividend

Market capitalisation and dividend

17 / 50

17. The offer document is not a legal document

True

False

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18. The custodian of a mutual fund:

not required to be registered with SEBI

need not be an entity independent of the sponsors

is appointed for safekeeping of securities

does not give or receive deliveries of physical securities

19 / 50

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

passive fund manager

all fund managers

non fund manager

an active fund manager

20 / 50

20. 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. 2030

Rs. 2000

Rs. 1985

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

the transfer agent

the custodian

the bankers

the trustees

22 / 50

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

3 fiscal years

one fiscal year

2 fiscal years

six months

23 / 50

23. A compliance officer

cannot be appointed by the AMC

belongs to SEBI

stands guarantee to the information contained in the offer document

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

24 / 50

24. 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

Yes, a test conducted by AMFI

25 / 50

25. A mutual fund owned by

The Government of India

AMFI

SEBI

All its investor

26 / 50

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

Balanced funds

Gilt funds

Growth funds

Debt funds

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

yield extra

yield plus

yield premium

yield spread

28 / 50

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

quarterly

annually

when actually paid

on a day to day basis

29 / 50

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

units available for sale and repurchase at all times

an upper limit of NAV

an option to invest in any kind of securities

fixed fund size

30 / 50

30. 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

real estate prices

Stock market movements

31 / 50

31. Equity derivative instruments are

bonds

contracts

notes

32 / 50

32. The AMC of a mutual fund cannot

cannot invest the funds in securities

cannot invest the funds in government paper

act as a trustee of more than one mutual fund

undertake advisory services or financial consulting

33 / 50

33. 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

34 / 50

34. Commercial Paper is issued by Corporate bodies

to finance the acquisition of long term capital assets

to meet short-term working capital requirements

to retire long term debt

to pay dividend

35 / 50

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

Disclaimer Clause

Risk Factors

Opening, Closing and earliest Closing Date of the offer

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

36 / 50

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

Economy stocks

Cyclical stocks

Value stocks

Growth stocks

37 / 50

37. A high turnover rate for a fund indicates

high returns to the investor

a rising market

greater efficiency

high transaction costs

38 / 50

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

from the fund itself

from AMFI

on a stock exchange

from a stock broker

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

37.5%

40.6%

6.0%

34.6%

40 / 50

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

AMC

AMFI

SEBI

Distribution Agents based on demand for the Fund

41 / 50

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

Every Day

Every Month

Every Quarter

Every Hour

42 / 50

42. A funds NAV is affected by

units sold or redeemed

all of the above

valuation of all investment securities held

Purchase and sale of investment securities

43 / 50

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

False

True

44 / 50

44. The highest authority among the following is
the

Ministry of Finance

SEBI

RBI

Company Law Board

45 / 50

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

The Finance Ministry

RBI

SEBI

The sponsor of that mutual fund

46 / 50

46. 'Key Information Memorandum' is

Annual Report of the AMC

a sheet containing historical NAVs of other fund schemes

an abridged version of the offer document

the Memorandum & Articles of Association of the AMC

47 / 50

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

the type of securities in which the scheme will invest principally

asset allocation pattern

the specific securities in which the fund will invest

policy of diversification

48 / 50

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

call out the names of the investors

redeem the debt on maturity

redeem the debt before maturity

extend the tenure of the debt

49 / 50

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

Current market value of each share

dividend yield

Rs.10

Face value of each share

50 / 50

50. Shares of companies with large capital market
capitalisation

have greater growth potentia

are not available

are more liquid

none of the above

Your score is

The average score is 60%

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