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

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

2 / 50

The sponsor of a mutual fund may be
compared to

an equity shareholder in a Company

the Chief Executive of a Company

Promoter of a Company

a director in a Company

3 / 50

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

inflation risk

interest-rate risk

call risk

reinvestment risk

4 / 50

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

yield extra

yield plus

yield spread

yield premium

5 / 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

6 / 50

Equity derivative instruments are

shares

notes

bonds

contracts

7 / 50

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

when actually paid

on a day to day basis

annually

quarterly

8 / 50

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. 2030

Rs. 1985

Rs. 2015

9 / 50

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

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

back to the fund

10 / 50

Technical analysis guides the decision on

the right time to buy or sell

none of the above

whether to buy or sell

whether company's technical personnel are adequately qualified

11 / 50

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

Corporate Bonds

T-Bills

Government Securities

PSU Bonds

12 / 50

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

False

True

13 / 50

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

NAV Change

Total Return

none of the above

Total Return with reinvestment

14 / 50

'Key Information Memorandum' is

an abridged version of the offer document

the Memorandum & Articles of Association of the AMC

a sheet containing historical NAVs of other fund schemes

Annual Report of the AMC

15 / 50

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 earning per share

Market price and face value

Market price and dividend

16 / 50

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

none of the above

interest bearing

paying interest at a floating rate

zero coupon bonds

17 / 50

A call provision in a debt issue allows the issuer to

call out the names of the investors

extend the tenure of the debt

redeem the debt before maturity

redeem the debt on maturity

18 / 50

The AMC of a mutual fund cannot

act as a trustee of more than one mutual fund

cannot invest the funds in securities

undertake advisory services or financial consulting

cannot invest the funds in government paper

19 / 50

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

one fiscal year

2 fiscal years

six months

3 fiscal years

20 / 50

A high turnover rate for a fund indicates

greater efficiency

high returns to the investor

a rising market

high transaction costs

21 / 50

A better performance than the return on index
is given by

passive fund manager

all fund managers

non fund manager

an active fund manager

22 / 50

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

valuation date

record date

computation date

book closure date

23 / 50

The greatest potential for growth in capital is offered by

Balanced funds

Debt funds

Gilt funds

Growth funds

24 / 50

A mutual fund owned by

AMFI

SEBI

The Government of India

All its investor

25 / 50

The highest authority among the following is
the

RBI

Company Law Board

Ministry of Finance

SEBI

26 / 50

A compliance officer

cannot be appointed by the AMC

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

stands guarantee to the information contained in the offer document

belongs to SEBI

27 / 50

The entity that SEBI does not regulate is

share registrars

non-banking finance companies

mutual funds

stock exchanges

28 / 50

A close-ended mutual fund has a fixed:

Fund Size

Rate of Return

NAV

Number of Distributor

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

40.6%

34.6%

6.0%

37.5%

30 / 50

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

six weeks

one week

42 days

one month

31 / 50

Issuing and redeeming units of a mutual
fund is the role

the trustees

the bankers

the custodian

the transfer agent

32 / 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

33 / 50

The trust that manages a mutual fund is
appointed by

RBI

SEBI

The sponsor of that mutual fund

The Finance Ministry

34 / 50

NAVs of equity funds are not affected by

Happenings in the companies in which the fund has invested

Stock market movements

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

real estate prices

35 / 50

Shares of companies with large capital market
capitalisation

are not available

none of the above

are more liquid

have greater growth potentia

36 / 50

Units from an open-ended mutual fund are bought

from a stock broker

from the fund itself

on a stock exchange

from AMFI

37 / 50

The offer document is not a legal document

False

True

38 / 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

39 / 50

Of the following fund types the highest risk is associated with

Equity Growth Funds

Gilt Funds

Balanced Funds

Debt Funds

40 / 50

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

No

41 / 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 very high quality only

in Government Securities only

42 / 50

The following need not be covered in a Key Information Memorandum

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

Opening, Closing and earliest Closing Date of the offer

Risk Factors

Disclaimer Clause

43 / 50

The custodian of a mutual fund:

not required to be registered with SEBI

need not be an entity independent of the sponsors

does not give or receive deliveries of physical securities

is appointed for safekeeping of securities

44 / 50

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

12%

2%

22%

10%

45 / 50

The maximum load that a fund can charges determined by the

SEBI

Distribution Agents based on demand for the Fund

AMC

AMFI

46 / 50

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

Value stocks

Cyclical stocks

Growth stocks

Economy stocks

47 / 50

A put provision in a debt issue allows

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

investors to extend the tenure of debt

investor to put away the certificates in safe deposit vaults

48 / 50

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

Every Month

Every Quarter

Every Hour

Every Day

49 / 50

Commercial Paper is issued by Corporate bodies

to pay dividend

to retire long term debt

to meet short-term working capital requirements

to finance the acquisition of long term capital assets

50 / 50

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

Rs.10

Current market value of each share

dividend yield

Face value of each share

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!

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