Mock Test 1 - TheMFCentral

NISM V-A Mock Test 1

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

1 / 50

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

dividend yield

Current market value of each share

Rs.10

Face value of each share

2 / 50

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

Market capitalisation and dividend

Market price and face value

Market price and earning per share

Market price and dividend

3 / 50

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

an active fund manager

all fund managers

passive fund manager

non fund manager

4 / 50

4. The AMC of a mutual fund cannot

cannot invest the funds in government paper

act as a trustee of more than one mutual fund

undertake advisory services or financial consulting

cannot invest the funds in securities

5 / 50

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

Equity Growth Funds

Gilt Funds

Debt Funds

Balanced Funds

6 / 50

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

RBI

The sponsor of that mutual fund

The Finance Ministry

SEBI

7 / 50

7. A mutual fund owned by

AMFI

SEBI

All its investor

The Government of India

8 / 50

8. A funds NAV is affected by

Purchase and sale of investment securities

all of the above

valuation of all investment securities held

units sold or redeemed

9 / 50

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

Promoter of a Company

a director in a Company

an equity shareholder in a Company

the Chief Executive of a Company

10 / 50

10. The highest authority among the following is
the

SEBI

RBI

Company Law Board

Ministry of Finance

11 / 50

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

Rs. 2000

Rs. 2015

Rs. 2030

Rs. 1985

12 / 50

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

asset allocation pattern

the specific securities in which the fund will invest

the type of securities in which the scheme will invest principally

policy of diversification

13 / 50

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

False

True

14 / 50

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

call out the names of the investors

redeem the debt on maturity

extend the tenure of the debt

redeem the debt before maturity

15 / 50

15. 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

16 / 50

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

the trustees

the transfer agent

the custodian

the bankers

17 / 50

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

SEBI

AMFI

AMC

Distribution Agents based on demand for the Fund

18 / 50

18. A high turnover rate for a fund indicates

high returns to the investor

high transaction costs

greater efficiency

a rising market

19 / 50

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

PSU Bonds

Corporate Bonds

Government Securities

T-Bills

20 / 50

20. 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

21 / 50

21. NAVs of equity funds are not affected by

Stock market movements

Happenings in the companies in which the fund has invested

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

real estate prices

22 / 50

22. 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

to a special trust at NAV

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

back to the fund

23 / 50

23. 'Key Information Memorandum' is

an abridged version of the offer document

Annual Report of the AMC

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

24 / 50

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

Debt funds

Balanced funds

Gilt funds

Growth funds

25 / 50

25. Commercial Paper is issued by Corporate bodies

to finance the acquisition of long term capital assets

to retire long term debt

to pay dividend

to meet short-term working capital requirements

26 / 50

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

zero coupon bonds

none of the above

paying interest at a floating rate

interest bearing

27 / 50

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

book closure date

record date

valuation date

computation date

28 / 50

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

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

Disclaimer Clause

Risk Factors

Opening, Closing and earliest Closing Date of the offer

29 / 50

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

call risk

interest-rate risk

reinvestment risk

inflation risk

30 / 50

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

Cyclical stocks

Economy stocks

Growth stocks

Value stocks

31 / 50

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

Total Return with reinvestment

none of the above

Total Return

NAV Change

32 / 50

32. The entity that SEBI does not regulate is

stock exchanges

mutual funds

share registrars

non-banking finance companies

33 / 50

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

Fund Size

Rate of Return

NAV

Number of Distributor

34 / 50

34. 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

35 / 50

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

from the fund itself

from a stock broker

from AMFI

on a stock exchange

36 / 50

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

one month

six weeks

42 days

one week

37 / 50

37. 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

38 / 50

38. 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

39 / 50

39. Shares of companies with large capital market
capitalisation

are not available

have greater growth potentia

none of the above

are more liquid

40 / 50

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

yield premium

yield spread

yield plus

yield extra

41 / 50

41. The custodian of a mutual fund:

need not be an entity independent of the sponsors

does not give or receive deliveries of physical securities

not required to be registered with SEBI

is appointed for safekeeping of securities

42 / 50

42. A fixed term plan series is

A Fixed Term Corporate Bond

A Fixed term Bank Deposit

A Closed ended fund

An Open-ended fund

43 / 50

43. 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%

44 / 50

44. A compliance officer

stands guarantee to the information contained in the offer document

belongs to SEBI

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

cannot be appointed by the AMC

45 / 50

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

in Government Securities only

in very high quality only

in instruments issued by companies with a sound track record

in short-term securities

46 / 50

46. Equity derivative instruments are

notes

bonds

contracts

47 / 50

47. The offer document is not a legal document

False

True

48 / 50

48. 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%

49 / 50

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

an option to invest in any kind of securities

an upper limit of NAV

fixed fund size

units available for sale and repurchase at all times

50 / 50

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

Every Day

Every Quarter

Every Hour

Every Month

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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