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

Rs. 1985

Rs. 2015

Rs. 2000

Rs. 2030

2 / 50

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

record date

computation date

book closure date

valuation date

3 / 50

The sponsor of a mutual fund may be
compared to

an equity shareholder in a Company

Promoter of a Company

the Chief Executive of a Company

a director in a Company

4 / 50

A call provision in a debt issue allows the issuer to

call out the names of the investors

redeem the debt before maturity

redeem the debt on maturity

extend the tenure of the debt

5 / 50

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

call risk

inflation risk

reinvestment risk

interest-rate risk

6 / 50

'Key Information Memorandum' is

the Memorandum & Articles of Association of the AMC

a sheet containing historical NAVs of other fund schemes

Annual Report of the AMC

an abridged version of the offer document

7 / 50

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

annually

on a day to day basis

quarterly

when actually paid

8 / 50

A Gilt Fund is a special type of fund that invests

in very high quality only

in short-term securities

in Government Securities only

in instruments issued by companies with a sound track record

9 / 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 capitalisation and dividend

Market price and face value

Market price and dividend

10 / 50

Technical analysis guides the decision on

whether to buy or sell

the right time to buy or sell

none of the above

whether company's technical personnel are adequately qualified

11 / 50

The maximum load that a fund can charges determined by the

Distribution Agents based on demand for the Fund

SEBI

AMC

AMFI

12 / 50

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

13 / 50

A fixed term plan series is

A Fixed Term Corporate Bond

A Fixed term Bank Deposit

An Open-ended fund

A Closed ended fund

14 / 50

A close-ended mutual fund has a fixed:

Rate of Return

Fund Size

NAV

Number of Distributor

15 / 50

Issuing and redeeming units of a mutual
fund is the role

the trustees

the transfer agent

the custodian

the bankers

16 / 50

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

No

a Post Graduate university course

Yes, a test conducted by SEBI

Yes, a test conducted by AMFI

17 / 50

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

22%

2%

12%

10%

18 / 50

The entity that SEBI does not regulate is

mutual funds

share registrars

stock exchanges

non-banking finance companies

19 / 50

Units from an open-ended mutual fund are bought

from the fund itself

from AMFI

on a stock exchange

from a stock broker

20 / 50

The AMC of a mutual fund cannot

act as a trustee of more than one mutual fund

cannot invest the funds in securities

cannot invest the funds in government paper

undertake advisory services or financial consulting

21 / 50

An Open-ended mutual fund is one that has:

an option to invest in any kind of securities

fixed fund size

an upper limit of NAV

units available for sale and repurchase at all times

22 / 50

A high turnover rate for a fund indicates

high transaction costs

a rising market

high returns to the investor

greater efficiency

23 / 50

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

Every Day

Every Month

Every Hour

Every Quarter

24 / 50

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

T-Bills

PSU Bonds

Government Securities

Corporate Bonds

25 / 50

The trust that manages a mutual fund is
appointed by

The sponsor of that mutual fund

The Finance Ministry

RBI

SEBI

26 / 50

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

27 / 50

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

28 / 50

NAVs of equity funds are not affected by

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

Stock market movements

real estate prices

Happenings in the companies in which the fund has invested

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%

34.6%

40.6%

6.0%

30 / 50

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

asset allocation pattern

the type of securities in which the scheme will invest principally

the specific securities in which the fund will invest

policy of diversification

31 / 50

Of the following fund types the highest risk is associated with

Balanced Funds

Gilt Funds

Equity Growth Funds

Debt Funds

32 / 50

Shares of companies with large capital market
capitalisation

are more liquid

none of the above

are not available

have greater growth potentia

33 / 50

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

Current market value of each share

Rs.10

dividend yield

Face value of each share

34 / 50

A mutual fund owned by

All its investor

The Government of India

AMFI

SEBI

35 / 50

The offer document is not a legal document

True

False

36 / 50

A funds NAV is affected by

Purchase and sale of investment securities

all of the above

units sold or redeemed

valuation of all investment securities held

37 / 50

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

paying interest at a floating rate

zero coupon bonds

none of the above

interest bearing

38 / 50

The custodian of a mutual fund:

does not give or receive deliveries of physical securities

need not be an entity independent of the sponsors

is appointed for safekeeping of securities

not required to be registered with SEBI

39 / 50

Equity derivative instruments are

shares

notes

contracts

bonds

40 / 50

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

41 / 50

The greatest potential for growth in capital is offered by

Growth funds

Gilt funds

Balanced funds

Debt funds

42 / 50

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

False

True

43 / 50

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

2 fiscal years

3 fiscal years

six months

one fiscal year

44 / 50

A better performance than the return on index
is given by

non fund manager

all fund managers

passive fund manager

an active fund manager

45 / 50

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

six weeks

one week

42 days

one month

46 / 50

The highest authority among the following is
the

SEBI

RBI

Ministry of Finance

Company Law Board

47 / 50

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

Value stocks

Growth stocks

Economy stocks

Cyclical stocks

48 / 50

A compliance officer

belongs to SEBI

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

cannot be appointed by the AMC

stands guarantee to the information contained in the offer document

49 / 50

The following need not be covered in a Key Information Memorandum

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

Risk Factors

Disclaimer Clause

Opening, Closing and earliest Closing Date of the offer

50 / 50

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

none of the above

Total Return with reinvestment

NAV Change

Total Return

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.

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/.