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 highest authority among the following is
the

Company Law Board

RBI

SEBI

Ministry of Finance

3 / 50

An Open-ended mutual fund is one that has:

an upper limit of NAV

fixed fund size

units available for sale and repurchase at all times

an option to invest in any kind of securities

4 / 50

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

3 fiscal years

2 fiscal years

six months

one fiscal year

5 / 50

The entity that SEBI does not regulate is

mutual funds

share registrars

stock exchanges

non-banking finance companies

6 / 50

Shares of companies with large capital market
capitalisation

are not available

none of the above

have greater growth potentia

are more liquid

7 / 50

Commercial Paper is issued by Corporate bodies

to pay dividend

to retire long term debt

to finance the acquisition of long term capital assets

to meet short-term working capital requirements

8 / 50

A call provision in a debt issue allows the issuer to

extend the tenure of the debt

redeem the debt on maturity

call out the names of the investors

redeem the debt before maturity

9 / 50

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

zero coupon bonds

none of the above

interest bearing

paying interest at a floating rate

10 / 50

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

Face value of each share

Current market value of each share

dividend yield

Rs.10

11 / 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%

12 / 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

13 / 50

The AMC of a mutual fund cannot

undertake advisory services or financial consulting

cannot invest the funds in government paper

cannot invest the funds in securities

act as a trustee of more than one mutual fund

14 / 50

A mutual fund owned by

All its investor

AMFI

SEBI

The Government of India

15 / 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 price and dividend

Market price and earning per share

Market capitalisation and dividend

16 / 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%

6.0%

34.6%

37.5%

17 / 50

The sponsor of a mutual fund may be
compared to

a director in a Company

the Chief Executive of a Company

Promoter of a Company

an equity shareholder in a Company

18 / 50

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

one week

six weeks

42 days

one month

19 / 50

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

False

True

20 / 50

'Key Information Memorandum' is

an abridged version of the offer document

the Memorandum & Articles of Association of the AMC

Annual Report of the AMC

a sheet containing historical NAVs of other fund schemes

21 / 50

Issuing and redeeming units of a mutual
fund is the role

the bankers

the custodian

the trustees

the transfer agent

22 / 50

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

Every Day

Every Hour

Every Month

Every Quarter

23 / 50

Of the following fund types the highest risk is associated with

Debt Funds

Gilt Funds

Equity Growth Funds

Balanced Funds

24 / 50

The trust that manages a mutual fund is
appointed by

The sponsor of that mutual fund

SEBI

RBI

The Finance Ministry

25 / 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

26 / 50

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

T-Bills

Corporate Bonds

Government Securities

PSU Bonds

27 / 50

The greatest potential for growth in capital is offered by

Gilt funds

Debt funds

Growth funds

Balanced funds

28 / 50

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

on a day to day basis

quarterly

when actually paid

annually

29 / 50

The maximum load that a fund can charges determined by the

AMFI

Distribution Agents based on demand for the Fund

AMC

SEBI

30 / 50

A compliance officer

belongs to SEBI

stands guarantee to the information contained in the offer document

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

cannot be appointed by the AMC

31 / 50

The offer document is not a legal document

False

True

32 / 50

A Gilt Fund is a special type of fund that invests

in short-term securities

in very high quality only

in instruments issued by companies with a sound track record

in Government Securities only

33 / 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

Opening, Closing and earliest Closing Date of the offer

Disclaimer Clause

34 / 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

back to the fund

to a special trust at NAV

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

35 / 50

A high turnover rate for a fund indicates

a rising market

high returns to the investor

greater efficiency

high transaction costs

36 / 50

A put provision in a debt issue allows

investor to put away the certificates in safe deposit vaults

issuers to redeem debt prior to maturity

investors to redeem debt prior to maturity

investors to extend the tenure of debt

37 / 50

A close-ended mutual fund has a fixed:

Fund Size

Rate of Return

NAV

Number of Distributor

38 / 50

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

yield premium

yield spread

yield plus

yield extra

39 / 50

A fixed term plan series is

A Closed ended fund

A Fixed term Bank Deposit

A Fixed Term Corporate Bond

An Open-ended fund

40 / 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

asset allocation pattern

policy of diversification

the type of securities in which the scheme will invest principally

41 / 50

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

record date

computation date

valuation date

book closure date

42 / 50

NAVs of equity funds are not affected by

Stock market movements

Happenings in the companies in which the fund has invested

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

real estate prices

43 / 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

44 / 50

Units from an open-ended mutual fund are bought

from the fund itself

from a stock broker

on a stock exchange

from AMFI

45 / 50

Equity derivative instruments are

bonds

shares

contracts

notes

46 / 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

47 / 50

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

none of the above

Total Return

NAV Change

Total Return with reinvestment

48 / 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. 1985

Rs. 2015

Rs. 2030

49 / 50

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

Economy stocks

Cyclical stocks

Growth stocks

Value stocks

50 / 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

reinvestment risk

call risk

Your score is

The average score is 60%

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Good luck with your preparation for the NISM Series V-A exam!

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