Mock Test 1 - TheMFCentral

0%

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

A high turnover rate for a fund indicates

a rising market

greater efficiency

high returns to the investor

high transaction costs

2 / 50

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

3 / 50

A put provision in a debt issue allows

investors to extend the tenure of debt

issuers to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

investors to redeem debt prior to maturity

4 / 50

'Key Information Memorandum' is

a sheet containing historical NAVs of other fund schemes

Annual Report of the AMC

the Memorandum & Articles of Association of the AMC

an abridged version of the offer document

5 / 50

A call provision in a debt issue allows the issuer to

redeem the debt before maturity

call out the names of the investors

redeem the debt on maturity

extend the tenure of the debt

6 / 50

The trust that manages a mutual fund is
appointed by

The sponsor of that mutual fund

SEBI

The Finance Ministry

RBI

7 / 50

A mutual fund owned by

SEBI

The Government of India

All its investor

AMFI

8 / 50

A Gilt Fund is a special type of fund that invests

in very high quality only

in instruments issued by companies with a sound track record

in Government Securities only

in short-term securities

9 / 50

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

Corporate Bonds

Government Securities

T-Bills

PSU Bonds

10 / 50

Technical analysis guides the decision on

whether company's technical personnel are adequately qualified

the right time to buy or sell

whether to buy or sell

none of the above

11 / 50

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

3 fiscal years

2 fiscal years

one fiscal year

six months

12 / 50

The AMC of a mutual fund cannot

cannot invest the funds in government paper

act as a trustee of more than one mutual fund

cannot invest the funds in securities

undertake advisory services or financial consulting

13 / 50

NAVs of equity funds are not affected by

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

Happenings in the companies in which the fund has invested

Stock market movements

real estate prices

14 / 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. 1985

Rs. 2000

Rs. 2030

15 / 50

Equity derivative instruments are

bonds

shares

contracts

notes

16 / 50

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

Market price and earning per share

Market price and face value

Market price and dividend

Market capitalisation and dividend

17 / 50

The custodian of a mutual fund:

not required to be registered with SEBI

does not give or receive deliveries of physical securities

need not be an entity independent of the sponsors

is appointed for safekeeping of securities

18 / 50

A close-ended mutual fund has a fixed:

Rate of Return

Fund Size

NAV

Number of Distributor

19 / 50

Units from an open-ended mutual fund are bought

from a stock broker

from the fund itself

from AMFI

on a stock exchange

20 / 50

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

No

Yes, a test conducted by SEBI

a Post Graduate university course

Yes, a test conducted by AMFI

21 / 50

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

Rs.10

dividend yield

Face value of each share

Current market value of each share

22 / 50

A better performance than the return on index
is given by

an active fund manager

non fund manager

all fund managers

passive fund manager

23 / 50

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

False

True

24 / 50

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

Total Return

none of the above

NAV Change

Total Return with reinvestment

25 / 50

Shares of companies with large capital market
capitalisation

none of the above

are not available

have greater growth potentia

are more liquid

26 / 50

The sponsor of a mutual fund may be
compared to

Promoter of a Company

a director in a Company

the Chief Executive of a Company

an equity shareholder in a Company

27 / 50

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

Every Month

Every Quarter

Every Day

Every Hour

28 / 50

Commercial Paper is issued by Corporate bodies

to retire long term debt

to pay dividend

to finance the acquisition of long term capital assets

to meet short-term working capital requirements

29 / 50

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

computation date

valuation date

book closure date

record date

30 / 50

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

42 days

one month

six weeks

one week

31 / 50

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

2%

10%

22%

12%

32 / 50

The entity that SEBI does not regulate is

mutual funds

share registrars

stock exchanges

non-banking finance companies

33 / 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

6.0%

37.5%

40.6%

34.6%

34 / 50

The maximum load that a fund can charges determined by the

AMC

Distribution Agents based on demand for the Fund

SEBI

AMFI

35 / 50

A compliance officer

stands guarantee to the information contained in the offer document

cannot be appointed by the AMC

belongs to SEBI

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

36 / 50

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

37 / 50

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

reinvestment risk

inflation risk

interest-rate risk

call risk

38 / 50

A funds NAV is affected by

all of the above

Purchase and sale of investment securities

units sold or redeemed

valuation of all investment securities held

39 / 50

A fixed term plan series is

An Open-ended fund

A Fixed term Bank Deposit

A Closed ended fund

A Fixed Term Corporate Bond

40 / 50

The greatest potential for growth in capital is offered by

Debt funds

Growth funds

Gilt funds

Balanced funds

41 / 50

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

42 / 50

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

none of the above

zero coupon bonds

interest bearing

paying interest at a floating rate

43 / 50

Of the following fund types the highest risk is associated with

Equity Growth Funds

Balanced Funds

Gilt Funds

Debt Funds

44 / 50

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

Cyclical stocks

Value stocks

Growth stocks

Economy stocks

45 / 50

Issuing and redeeming units of a mutual
fund is the role

the trustees

the transfer agent

the bankers

the custodian

46 / 50

The highest authority among the following is
the

Company Law Board

RBI

Ministry of Finance

SEBI

47 / 50

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

the specific securities in which the fund will invest

policy of diversification

asset allocation pattern

the type of securities in which the scheme will invest principally

48 / 50

The offer document is not a legal document

True

False

49 / 50

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

to a special trust at NAV

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

50 / 50

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

on a day to day basis

quarterly

annually

when actually paid

Your score is

The average score is 60%

0%

Mock Test 1 | Mock Test 2 | Mock Test 3 | Mock Test 4 | Mock Test 5 | Mock Test 6 | Mock Test 7 | Mock Test 8 | Mock Test 9 | Mock Test 10

This mock test will help you familiarize yourself with the exam format, assess your knowledge, and identify areas that may need further study.

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

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/.