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

computation date

record date

book closure date

valuation date

2 / 50

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

Government Securities

Corporate Bonds

T-Bills

PSU Bonds

3 / 50

A put provision in a debt issue allows

investors to extend the tenure of debt

investors to redeem debt prior to maturity

issuers to redeem debt prior to maturity

investor to put away the certificates in safe deposit vaults

4 / 50

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

Value stocks

Cyclical stocks

Growth stocks

Economy stocks

5 / 50

NAVs of equity funds are not affected by

Happenings in the companies in which the fund has invested

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

Stock market movements

real estate prices

6 / 50

The AMC of a mutual fund cannot

undertake advisory services or financial consulting

act as a trustee of more than one mutual fund

cannot invest the funds in government paper

cannot invest the funds in securities

7 / 50

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

Current market value of each share

Face value of each share

Rs.10

dividend yield

8 / 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%

6.0%

40.6%

34.6%

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 dividend

Market capitalisation and dividend

Market price and face value

Market price and earning per share

10 / 50

Shares of companies with large capital market
capitalisation

none of the above

are more liquid

are not available

have greater growth potentia

11 / 50

The greatest potential for growth in capital is offered by

Growth funds

Gilt funds

Balanced funds

Debt funds

12 / 50

Of the following fund types the highest risk is associated with

Equity Growth Funds

Debt Funds

Balanced Funds

Gilt Funds

13 / 50

The following need not be covered in a Key Information Memorandum

Opening, Closing and earliest Closing Date of the offer

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

Risk Factors

Disclaimer Clause

14 / 50

A better performance than the return on index
is given by

an active fund manager

passive fund manager

all fund managers

non fund manager

15 / 50

The entity that SEBI does not regulate is

non-banking finance companies

share registrars

mutual funds

stock exchanges

16 / 50

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

yield spread

yield plus

yield extra

yield premium

17 / 50

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

Every Month

Every Day

Every Quarter

Every Hour

18 / 50

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

none of the above

interest bearing

zero coupon bonds

paying interest at a floating rate

19 / 50

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

asset allocation pattern

policy of diversification

the specific securities in which the fund will invest

the type of securities in which the scheme will invest principally

20 / 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%

21 / 50

A close-ended mutual fund has a fixed:

NAV

Rate of Return

Fund Size

Number of Distributor

22 / 50

Commercial Paper is issued by Corporate bodies

to finance the acquisition of long term capital assets

to pay dividend

to meet short-term working capital requirements

to retire long term debt

23 / 50

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

24 / 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

25 / 50

Issuing and redeeming units of a mutual
fund is the role

the trustees

the bankers

the transfer agent

the custodian

26 / 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. 2015

Rs. 1985

27 / 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 AMFI

No

a Post Graduate university course

Yes, a test conducted by SEBI

28 / 50

A call provision in a debt issue allows the issuer to

call out the names of the investors

redeem the debt before maturity

extend the tenure of the debt

redeem the debt on maturity

29 / 50

A high turnover rate for a fund indicates

high transaction costs

greater efficiency

a rising market

high returns to the investor

30 / 50

The sponsor of a mutual fund may be
compared to

Promoter of a Company

an equity shareholder in a Company

the Chief Executive of a Company

a director in a Company

31 / 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

back to the fund

on stock exchange where the fund is listed

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

32 / 50

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

one week

42 days

six weeks

one month

33 / 50

Technical analysis guides the decision on

the right time to buy or sell

whether company's technical personnel are adequately qualified

whether to buy or sell

none of the above

34 / 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

35 / 50

A fixed term plan series is

An Open-ended fund

A Fixed Term Corporate Bond

A Fixed term Bank Deposit

A Closed ended fund

36 / 50

Units from an open-ended mutual fund are bought

from the fund itself

on a stock exchange

from AMFI

from a stock broker

37 / 50

The trust that manages a mutual fund is
appointed by

The sponsor of that mutual fund

SEBI

The Finance Ministry

RBI

38 / 50

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

reinvestment risk

call risk

interest-rate risk

inflation risk

39 / 50

Equity derivative instruments are

contracts

shares

bonds

notes

40 / 50

'Key Information Memorandum' is

a sheet containing historical NAVs of other fund schemes

the Memorandum & Articles of Association of the AMC

an abridged version of the offer document

Annual Report of the AMC

41 / 50

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

NAV Change

Total Return with reinvestment

none of the above

Total Return

42 / 50

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

annually

when actually paid

on a day to day basis

quarterly

43 / 50

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

True

False

44 / 50

The offer document is not a legal document

True

False

45 / 50

The maximum load that a fund can charges determined by the

AMFI

Distribution Agents based on demand for the Fund

SEBI

AMC

46 / 50

A mutual fund owned by

AMFI

SEBI

The Government of India

All its investor

47 / 50

An Open-ended mutual fund is one that has:

units available for sale and repurchase at all times

an option to invest in any kind of securities

an upper limit of NAV

fixed fund size

48 / 50

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

2 fiscal years

six months

one fiscal year

3 fiscal years

49 / 50

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

50 / 50

The highest authority among the following is
the

RBI

Ministry of Finance

Company Law Board

SEBI

Your score is

The average score is 59%

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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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