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. If 10-year government securities Neil 10% and a 10-Year fixed deposit in a company yields 12%, the yield spread is

12%

22%

10%

2 / 50

2. A compliance officer

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

belongs to SEBI

3 / 50

3. 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. 1985

Rs. 2030

4 / 50

4. Commercial Paper is issued by Corporate bodies

to retire long term debt

to meet short-term working capital requirements

to finance the acquisition of long term capital assets

to pay dividend

5 / 50

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

yield plus

yield spread

yield extra

yield premium

6 / 50

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

PSU Bonds

Government Securities

Corporate Bonds

T-Bills

7 / 50

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

NAV

Rate of Return

Number of Distributor

Fund Size

8 / 50

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

inflation risk

call risk

interest-rate risk

reinvestment risk

9 / 50

9. The entity that SEBI does not regulate is

mutual funds

stock exchanges

non-banking finance companies

share registrars

10 / 50

10. 'Key Information Memorandum' is

Annual Report of the AMC

an abridged version of the offer document

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

11 / 50

11. 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

Yes, a test conducted by AMFI

a Post Graduate university course

12 / 50

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

Growth funds

Balanced funds

Gilt funds

Debt funds

13 / 50

13. The offer document is not a legal document

False

True

14 / 50

14. A high turnover rate for a fund indicates

greater efficiency

high returns to the investor

a rising market

high transaction costs

15 / 50

15. The highest authority among the following is
the

RBI

Company Law Board

Ministry of Finance

SEBI

16 / 50

16. The custodian of a mutual fund:

not required to be registered with SEBI

is appointed for safekeeping of securities

need not be an entity independent of the sponsors

does not give or receive deliveries of physical securities

17 / 50

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

in very high quality only

in Government Securities only

in instruments issued by companies with a sound track record

in short-term securities

18 / 50

18. 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

19 / 50

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

the trustees

the bankers

the custodian

the transfer agent

20 / 50

20. NAVs of equity funds are not affected by

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

Stock market movements

Happenings in the companies in which the fund has invested

real estate prices

21 / 50

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

extend the tenure of the debt

redeem the debt before maturity

redeem the debt on maturity

call out the names of the investors

22 / 50

22. 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 earning per share

Market capitalisation and dividend

Market price and face value

23 / 50

23. Technical analysis guides the decision on

none of the above

the right time to buy or sell

whether to buy or sell

whether company's technical personnel are adequately qualified

24 / 50

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

fixed fund size

an upper limit of NAV

units available for sale and repurchase at all times

an option to invest in any kind of securities

25 / 50

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

when actually paid

quarterly

annually

on a day to day basis

26 / 50

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

Face value of each share

dividend yield

Current market value of each share

Rs.10

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

The Finance Ministry

The sponsor of that mutual fund

RBI

SEBI

28 / 50

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

from AMFI

from the fund itself

from a stock broker

on a stock exchange

29 / 50

29. Shares of companies with large capital market
capitalisation

are not available

have greater growth potentia

none of the above

are more liquid

30 / 50

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

back to the fund

to a special trust at NAV

31 / 50

31. A funds NAV is affected by

all of the above

units sold or redeemed

Purchase and sale of investment securities

valuation of all investment securities held

32 / 50

32. A mutual fund owned by

SEBI

AMFI

The Government of India

All its investor

33 / 50

33. A put provision in a debt issue allows

issuers to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

investors to redeem debt prior to maturity

investors to extend the tenure of debt

34 / 50

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

Promoter of a Company

the Chief Executive of a Company

an equity shareholder in a Company

a director in a Company

35 / 50

35. Equity derivative instruments are

bonds

contracts

notes

36 / 50

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

Debt Funds

Equity Growth Funds

Balanced Funds

Gilt Funds

37 / 50

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

an active fund manager

all fund managers

non fund manager

passive fund manager

38 / 50

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

computation date

book closure date

valuation date

record date

39 / 50

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

Risk Factors

Opening, Closing and earliest Closing Date of the offer

Disclaimer Clause

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

40 / 50

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

six months

3 fiscal years

one fiscal year

2 fiscal years

41 / 50

41. The AMC of a mutual fund cannot

cannot invest the funds in government paper

cannot invest the funds in securities

act as a trustee of more than one mutual fund

undertake advisory services or financial consulting

42 / 50

42. 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

policy of diversification

the specific securities in which the fund will invest

asset allocation pattern

43 / 50

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

NAV Change

Total Return with reinvestment

Total Return

none of the above

44 / 50

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

six weeks

42 days

one week

one month

45 / 50

45. A fixed term plan series is

A Fixed term Bank Deposit

A Closed ended fund

An Open-ended fund

A Fixed Term Corporate Bond

46 / 50

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

AMFI

SEBI

Distribution Agents based on demand for the Fund

AMC

47 / 50

47. 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%

37.5%

40.6%

48 / 50

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

Every Quarter

Every Hour

Every Day

Every Month

49 / 50

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

Value stocks

Cyclical stocks

Growth stocks

Economy stocks

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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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!

For the latest and most accurate information, please visit the NISM website at https://certifications.nism.ac.in/nismaol/.