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

yield spread

yield plus

yield premium

yield extra

2 / 50

A high turnover rate for a fund indicates

high returns to the investor

greater efficiency

high transaction costs

a rising market

3 / 50

Issuing and redeeming units of a mutual
fund is the role

the transfer agent

the bankers

the trustees

the custodian

4 / 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

5 / 50

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

a Post Graduate university course

No

Yes, a test conducted by AMFI

Yes, a test conducted by SEBI

6 / 50

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

policy of diversification

the specific securities in which the fund will invest

7 / 50

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

Government Securities

PSU Bonds

T-Bills

Corporate Bonds

8 / 50

The sponsor of a mutual fund may be
compared to

Promoter of a Company

an equity shareholder in a Company

a director in a Company

the Chief Executive of a Company

9 / 50

The custodian of a mutual fund:

is appointed for safekeeping of securities

does not give or receive deliveries of physical securities

not required to be registered with SEBI

need not be an entity independent of the sponsors

10 / 50

Technical analysis guides the decision on

whether company's technical personnel are adequately qualified

none of the above

the right time to buy or sell

whether to buy or sell

11 / 50

The greatest potential for growth in capital is offered by

Gilt funds

Growth funds

Debt funds

Balanced funds

12 / 50

Equity derivative instruments are

shares

contracts

notes

bonds

13 / 50

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

42 days

one week

one month

six weeks

14 / 50

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%

2%

15 / 50

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

16 / 50

The highest authority among the following is
the

Ministry of Finance

RBI

Company Law Board

SEBI

17 / 50

The entity that SEBI does not regulate is

non-banking finance companies

share registrars

mutual funds

stock exchanges

18 / 50

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

19 / 50

A better performance than the return on index
is given by

all fund managers

passive fund manager

an active fund manager

non fund manager

20 / 50

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

Every Hour

Every Day

Every Month

Every Quarter

21 / 50

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 capitalisation and dividend

Market price and earning per share

Market price and dividend

22 / 50

The maximum load that a fund can charges determined by the

AMFI

AMC

Distribution Agents based on demand for the Fund

SEBI

23 / 50

A put provision in a debt issue allows

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

investors to extend the tenure of debt

24 / 50

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

when actually paid

annually

quarterly

on a day to day basis

25 / 50

A fixed term plan series is

An Open-ended fund

A Fixed Term Corporate Bond

A Fixed term Bank Deposit

A Closed ended fund

26 / 50

A close-ended mutual fund has a fixed:

Rate of Return

NAV

Fund Size

Number of Distributor

27 / 50

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

reinvestment risk

interest-rate risk

inflation risk

call risk

28 / 50

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

book closure date

record date

computation date

valuation date

29 / 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

37.5%

6.0%

34.6%

40.6%

30 / 50

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

31 / 50

Shares of companies with large capital market
capitalisation

have greater growth potentia

are not available

are more liquid

none of the above

32 / 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

33 / 50

Commercial Paper is issued by Corporate bodies

to finance the acquisition of long term capital assets

to retire long term debt

to meet short-term working capital requirements

to pay dividend

34 / 50

A mutual fund owned by

All its investor

SEBI

The Government of India

AMFI

35 / 50

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

none of the above

Total Return

Total Return with reinvestment

NAV Change

36 / 50

The trust that manages a mutual fund is
appointed by

The sponsor of that mutual fund

RBI

SEBI

The Finance Ministry

37 / 50

An Open-ended mutual fund is one that has:

fixed fund size

an option to invest in any kind of securities

an upper limit of NAV

units available for sale and repurchase at all times

38 / 50

A Gilt Fund is a special type of fund that invests

in short-term securities

in instruments issued by companies with a sound track record

in Government Securities only

in very high quality only

39 / 50

A call provision in a debt issue allows the issuer to

redeem the debt on maturity

extend the tenure of the debt

redeem the debt before maturity

call out the names of the investors

40 / 50

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

back to the fund

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

on stock exchange where the fund is listed

to a special trust at NAV

41 / 50

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

Growth stocks

Cyclical stocks

Value stocks

Economy stocks

42 / 50

The offer document is not a legal document

True

False

43 / 50

The following need not be covered in a Key Information Memorandum

Risk Factors

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

Disclaimer Clause

Opening, Closing and earliest Closing Date of the offer

44 / 50

Units from an open-ended mutual fund are bought

from the fund itself

from AMFI

on a stock exchange

from a stock broker

45 / 50

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

True

False

46 / 50

The AMC of a mutual fund cannot

act as a trustee of more than one mutual fund

undertake advisory services or financial consulting

cannot invest the funds in government paper

cannot invest the funds in securities

47 / 50

A compliance officer

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

belongs to SEBI

cannot be appointed by the AMC

stands guarantee to the information contained in the offer document

48 / 50

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

dividend yield

Rs.10

Current market value of each share

Face value of each share

49 / 50

'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

50 / 50

Of the following fund types the highest risk is associated with

Debt Funds

Equity Growth Funds

Balanced Funds

Gilt Funds

Your score is

The average score is 60%

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