McqMate
1. |
The First player of the Mutual fund industry was______________. |
A. | ICICI MF |
B. | UTI MF |
C. | SBI MF |
D. | LIC MF |
Answer» B. UTI MF |
2. |
UTI mutual fund was set up in the Year _______________. |
A. | 1963 |
B. | 1986 |
C. | 1956 |
D. | 1947 |
Answer» A. 1963 |
3. |
_______________ Mutual fund company was set up as a joint venture between RBI and Government of India |
A. | UTI MF |
B. | LIC MF |
C. | SBI MF |
D. | ICICI MF |
Answer» A. UTI MF |
4. |
Who establishes the Mutual Fund in India? |
A. | Securities Exchange Board of India |
B. | Asset Management Company |
C. | Sponsor |
D. | Shareholders |
Answer» C. Sponsor |
5. |
In India, AMC must be registered with____________. |
A. | Company’s Act, 2013 |
B. | No registration required. |
C. | Securities Exchange Board of India |
D. | Reserve Bank of India |
Answer» C. Securities Exchange Board of India |
6. |
___________ is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities. |
A. | Government Securitie |
B. | Mutual Funds |
C. | Derivatives |
D. | Shares |
Answer» B. Mutual Funds |
7. |
The value of one unit of investment in Mutual fund is called the _______________. |
A. | Net Asset Value |
B. | Issue value |
C. | Market value |
D. | Gross Asset value |
Answer» A. Net Asset Value |
8. |
________________ regulates the Mutual fund industry in India. |
A. | Reserve Bank of India |
B. | Association of Mutual Funds of India |
C. | Securities Exchange Board of India |
D. | State Bank of India |
Answer» C. Securities Exchange Board of India |
9. |
What is the full form of NAV? |
A. | Net Assessment Value |
B. | National Asset Value |
C. | Net Asset Value |
D. | National Asset variation |
Answer» C. Net Asset Value |
10. |
_______________ schemes not exposed to sudden and large movements of funds. |
A. | Fixed maturity plan |
B. | Open-Ended Funds |
C. | Close-Ended Funds |
D. | Interval fund |
Answer» C. Close-Ended Funds |
11. |
The feature of a mutual fund, where it spreads the investment in varied stocks and sectors by pooling the funds of various investors, is called as ______________. |
A. | Professional Management |
B. | Affordability |
C. | Diversification |
D. | Profit |
Answer» C. Diversification |
12. |
Dividend income received from mutual in the hands of unit holders |
A. | Fully Taxable |
B. | Fully Exempt |
C. | Partly Exempt |
D. | Partly Taxable |
Answer» B. Fully Exempt |
13. |
Which of the following is not a limitation of mutual funds? |
A. | No guarantee of return |
B. | Fees and Expenses |
C. | Poor Performance |
D. | Professional Management |
Answer» D. Professional Management |
14. |
The Mutual fund industry follows which of the following regulation? |
A. | SEBI (Mutual fund) regulations 1996 |
B. | Mutual fund regulation 2004 |
C. | Mutual fund regulation 2003 |
D. | RBI |
Answer» A. SEBI (Mutual fund) regulations 1996 |
15. |
Presently there are __________ AMC in India |
A. | 40 |
B. | 50 |
C. | 44 |
D. | 39 |
Answer» C. 44 |
16. |
A _________________ is a trust that pools the savings of a number of investors who share common financial goals. |
A. | Share |
B. | Mutual Funds |
C. | Government Securities |
D. | Derivatives |
Answer» B. Mutual Funds |
17. |
What are the reasons for economies of scale to the benefit of Mutual funds? |
A. | Large volumes of trade |
B. | Portfolio diversification |
C. | Risk reduction |
D. | Loss |
Answer» B. Portfolio diversification |
18. |
_____________ are also known as the protectors of the fund and are employed by the fund sponsor. |
A. | Sponsor |
B. | Trustees |
C. | Asset Management Company |
D. | Custodian |
Answer» B. Trustees |
19. |
A minimum start-up capital of about ______________is required for open-ended schemes |
A. | 500 million |
B. | 1000 million |
C. | 350 million |
D. | 200 million |
Answer» D. 200 million |
20. |
A minimum start-up capital of about ______________is required for close-ended schemes |
A. | 150 million |
B. | 100 million |
C. | 350 million |
D. | 200 million |
Answer» A. 150 million |
21. |
The funds in which units can be purchased only during the initial offer period are called |
A. | Open-Ended Fund |
B. | Close-Ended Funds |
C. | Interval Funds |
D. | Fixed maturity plan |
Answer» B. Close-Ended Funds |
22. |
______________ are considered high-risk funds but also tend to provide high returns. |
A. | Equity Fund |
B. | Money Market Funds |
C. | Balanced or Hybrid Funds |
D. | Debt Funds |
Answer» A. Equity Fund |
23. |
____________ are funds that invest in company debentures, government bonds and other fixed-income assets. |
A. | Equity Fund |
B. | Money Market Funds |
C. | Balanced or Hybrid Funds |
D. | Debt Funds |
Answer» D. Debt Funds |
24. |
HDFC Sensex ETF is an example of ____________. |
A. | Sector Fund |
B. | Index Funds |
C. | Fund of funds |
D. | International funds |
Answer» B. Index Funds |
25. |
Nippon India Pharma fund is an example of ______________. |
A. | Sector Fund |
B. | Index Funds |
C. | Equity funds |
D. | Global funds |
Answer» C. Equity funds |
26. |
AMFI was incorporated on ________________. |
A. | 22nd August 1995 |
B. | 12th April 1992 |
C. | 1st April 1935 |
D. | 15th August 1947 |
Answer» A. 22nd August 1995 |
27. |
Which type of fund is more volatile? |
A. | Large-cap fund |
B. | Mid-cap funds |
C. | Small-cap funds |
D. | Hybrid Funds |
Answer» A. Large-cap fund |
28. |
An investor pays a tax on the dividend that he receives from a mutual fund scheme at |
A. | 10% |
B. | 20% |
C. | 30% |
D. | Tax is not applicable |
Answer» A. 10% |
29. |
Investors can enter and exit under _______ at any time |
A. | Fixed maturity plan |
B. | Open-Ended Funds |
C. | Close-Ended Funds |
D. | Interval fund |
Answer» B. Open-Ended Funds |
30. |
The NAV of each scheme should be updated on AMFI's website |
A. | Every Day |
B. | Every month |
C. | Every hour |
D. | Every quarter |
Answer» A. Every Day |
31. |
Mutual Fund schemes are first offered to investors through. |
A. | Stock exchange |
B. | New Fund Offer |
C. | Initial Public Offer |
D. | AMFI |
Answer» B. New Fund Offer |
32. |
Which of the following banks launched the first mutual fund in India? |
A. | SBI |
B. | Canara Bank |
C. | Bank of India |
D. | Indian Bank |
Answer» A. SBI |
33. |
Which of the following organizations is the Mutual Fund Market regulator in India? |
A. | SEBI |
B. | RBI |
C. | AMFI |
D. | CIBIL |
Answer» C. AMFI |
34. |
A Mutual fund is owned by _____________. |
A. | SEBI |
B. | The Government of India |
C. | AMFI |
D. | All its investors |
Answer» D. All its investors |
35. |
SIP is a _______________. |
A. | Method of regular investment |
B. | Name of a mutual fund |
C. | Brand of a tea stock |
D. | Method of one time investment |
Answer» A. Method of regular investment |
36. |
SIP stands for ______________. |
A. | Systematic investment plan |
B. | Simple investment plan |
C. | Simplified investment programme |
D. | Single investment plan |
Answer» A. Systematic investment plan |
37. |
Day to day operations of a mutual fund is handled by |
A. | Asset Management Company |
B. | Sponsor |
C. | Trustee |
D. | Shareholders |
Answer» A. Asset Management Company |
38. |
Mutual funds are constituted in India as ____________. |
A. | Trust |
B. | Limited liability partnership |
C. | Companies |
D. | Non-Government organisations |
Answer» A. Trust |
39. |
The susceptibility of a mutual fund’s performance to general stock market conditions is known as |
A. | Interest rate risk |
B. | Market risk |
C. | Exchange risk |
D. | Corporate risk |
Answer» B. Market risk |
40. |
The _________ is the market value of the securities that mutual funds have purchased minus any liabilities per unit. |
A. | Net asset value |
B. | Book value |
C. | Gross asset value |
D. | Net worth value |
Answer» A. Net asset value |
41. |
Which payment mode is not applicable while purchasing mutual fund scheme? |
A. | Cheque |
B. | Demand Draft |
C. | Cash |
D. | Pay Order |
Answer» C. Cash |
42. |
____________ are an important link between fund managers and investors. |
A. | Trustee |
B. | Asset Management Company |
C. | Custodian |
D. | Registrar And Transfer Agents |
Answer» D. Registrar And Transfer Agents |
43. |
What is an open-ended mutual fund? |
A. | It is the one that has an option to invest in any kind of security |
B. | It has units available for sale and repurchase at all times. |
C. | It has an upper limit on its NAV |
D. | It has a fixed fund size |
Answer» B. It has units available for sale and repurchase at all times. |
44. |
In ____________ funds, the money is invested primarily in short-term or very short-term instruments e.g. T-Bills, CPs etc. |
A. | Growth fund |
B. | Income funds |
C. | Liquid funds |
D. | Tax-Saving Funds (ELSS) |
Answer» C. Liquid funds |
45. |
________ is a method of investing in mutual funds wherein an investor chooses a mutual fund scheme and invests a the fixed amount of his choice at fixed intervals. |
A. | Systematic Transfer Plan |
B. | Systematic Withdrawal Plan |
C. | Systematic Investment Plan |
D. | Systematic Innovative Plan |
Answer» C. Systematic Investment Plan |
46. |
Mutual funds in India are permitted to invest in___________ |
A. | Securitie |
B. | Securities and gold |
C. | Securities other than real estate |
D. | Securities, gold, real estate |
Answer» D. Securities, gold, real estate |
47. |
……… is the first time subscription offer for a new scheme launched by the Asset Management Company. |
A. | FFO |
B. | CFO |
C. | IPO |
D. | NFO |
Answer» D. NFO |
48. |
A mutual fund is a ……………intermediary (like a trust) regulated in India by the SEBI. |
A. | financial |
B. | professional |
C. | physical |
D. | Mental |
Answer» A. financial |
49. |
Transaction cost is ………… with investment in Mutual Funds. |
A. | high |
B. | low |
C. | very high |
D. | Nil |
Answer» B. low |
50. |
………………… helps to improve the risk return relationship. |
A. | Diversification |
B. | Liquidity |
C. | Professional Management |
D. | tax |
Answer» A. Diversification |
51. |
Open ended funds can be purchased and sold …………………. |
A. | Anytime during the day |
B. | Only at the beginning of the day |
C. | Only at the end of the day |
D. | Starting of the day |
Answer» C. Only at the end of the day |
52. |
……………………. is a facility where investor will invest a fixed amount in a mutual fund scheme at regular intervals. |
A. | SIP |
B. | SWP |
C. | STP |
D. | SRT |
Answer» A. SIP |
53. |
…………….. allows an investor to withdraw a fixed amount of money periodically. |
A. | SIP |
B. | SWP |
C. | STP |
D. | SRT |
Answer» B. SWP |
54. |
In …………….. STP investor transfers the profit from one fund and invests in the other. |
A. | Flexi |
B. | Capital Appreciation |
C. | Fixed |
D. | Net |
Answer» B. Capital Appreciation |
55. |
……………. is a facility provided by banks to investors in new fund offers (NFOs) of mutual funds. |
A. | ASBA |
B. | CASBA |
C. | MASBA |
D. | NASA |
Answer» A. ASBA |
56. |
A ……………… ended scheme shall be wound upon the expiry of duration fixed in the scheme on the redemption of units. |
A. | Open |
B. | close |
C. | Old |
D. | New |
Answer» B. close |
57. |
A mutual fund has a beginning balance of 100 million earns interest of 10 million, receives dividends of 15 million, and has expenses of 5 million. If 10 million shares are outstanding, what is the NAV? |
A. | 10.50 |
B. | 11.00 |
C. | 12.00 |
D. | 12.50 |
Answer» C. 12.00 |
58. |
You invested 1,000 in a mutual fund with a 4% load when NAV was 20 per share. If you sell your shares at a NAV of 20 per share, what is the return of your investment? |
A. | 14.8% |
B. | 15.2% |
C. | 12.5% |
D. | 10.8% |
Answer» B. 15.2% |
59. |
If a mutual fund NAV Is 50 and its expense ratio is 2% what are the total expenses per share? |
A. | 2 |
B. | 10 |
C. | 1 |
D. | 5 |
Answer» C. 1 |
60. |
How much money would you need to purchase 400 shares of a mutual fund with a NAV of $55 per share and a 3% load? |
A. | $22,000 |
B. | $21,450 |
C. | $23,200 |
D. | $22,660 |
Answer» D. $22,660 |
61. |
Investors in high tax brackets will normally achieve higher performance by selecting a mutual fund that generates |
A. | long-term dividends |
B. | long-term capital gains |
C. | long-term stock dividends |
D. | short-term capital gains |
Answer» B. long-term capital gains |
62. |
What would be the tax consequence of owning a mutual fund that made distributions of 600 resulting from short-term capital gains and $800 resulting from long-term capital gain rate? |
A. | 420 |
B. | 140 |
C. | 300 |
D. | 260 |
Answer» D. 260 |
63. |
If a scheme has 45Cr units issued and has an FV of Rs. 10 and NAV is at 11.33, unit capital(Rs.Cr) would be equal to |
A. | 500.85 |
B. | 50.85 |
C. | 950.85 |
D. | 450 |
Answer» B. 50.85 |
64. |
A scheme has average weekly net assets of Rs. 324 Cr and has annual expenses of Rs 3.24Cr, it's expenses ratio is |
A. | 1% |
B. | 10% |
C. | Can't say |
D. | Insufficient information |
Answer» A. 1% |
65. |
For a scheme to be defined as an equal fund, it must have a minimum |
A. | 65% in Indian equities |
B. | 65% in equities |
C. | 51% Indian equities |
D. | 35% in Indian equities |
Answer» B. 65% in equities |
66. |
Which of the following characteristics is not true of close-ended funds? |
A. | They can be load or no-load funds. |
B. | They do not repurchase shares from investors. |
C. | They are bought and sold on stock exchanges. |
D. | They may sell above or below NAV. |
Answer» A. They can be load or no-load funds. |
67. |
Regarding load and no-load mutual funds, |
A. | Load funds usually outperform no-load funds |
B. | no-load funds perform at least as well as load funds even fees are ignored. |
C. | Two types of fund perform about the same considering the fees |
D. | Load funds may be bought directly, whereas no-load funds must be purchased through a broker. |
Answer» B. no-load funds perform at least as well as load funds even fees are ignored. |
68. |
On average, actively managed mutual funds have an expenses ratio of about |
A. | 1.5% |
B. | 2.5% |
C. | 3% |
D. | 5%. |
Answer» A. 1.5% |
69. |
The component of the expense ratio that includes a fee charged by some mutual funds to pay brokers is |
A. | A management fee |
B. | A 12b-1 fee |
C. | An administrative expense. |
D. | A referral fee. |
Answer» B. A 12b-1 fee |
70. |
which of the following is a stock mutual fund? |
A. | Ginnie Mae fund |
B. | Growth fund |
C. | Municipal securities fund |
D. | Treasury securities find |
Answer» B. Growth fund |
71. |
Which of the following stock mutual fund focus on medium-sized companies that are more established than small-cap firms, but may have less growth potential? |
A. | Equity income funds |
B. | Sector funds |
C. | Mid-size capitalisation funds |
D. | Balance growth and income funds |
Answer» C. Mid-size capitalisation funds |
72. |
Which of the following is not a reason why Index funds typically incur lower expenses than other mutual funds? |
A. | Index funds are not actively managed |
B. | There are no expenses for research |
C. | The portfolio is reversed infrequently, so the transaction cost is low. |
D. | The security and Exchange Commission set a limit on index fund expenses |
Answer» D. The security and Exchange Commission set a limit on index fund expenses |
73. |
______ funds are mutual funds that attempt to mirror the movements of the existing board market indicators. |
A. | Internet |
B. | Stock |
C. | Index |
D. | International |
Answer» C. Index |
74. |
Index funds incur _______ expenses and are ______ managed compared to other funds. |
A. | fewer; not actively |
B. | fewer; actively |
C. | more; not actively |
D. | more; actively |
Answer» A. fewer; not actively |
75. |
Index funds offer tax advantages because they ______ In much trading and, therefore, _______ capital gains. |
A. | engage; generate |
B. | do not engage; generate |
C. | engage; do not generate |
D. | do not engage; do not generate |
Answer» D. do not engage; do not generate |
76. |
The difference between an international and a global fund is |
A. | global funds invest in both U.S. firms and those of other countries wherever International funds focus on firms outside the United States. |
B. | International funds invest in U.S. firms and those of other countries while global funds invest only in foreign firms. |
C. | international funds in Treasury securities but no U.S. firms while global funds invest in both. |
D. | there is no difference except in name. |
Answer» A. global funds invest in both U.S. firms and those of other countries wherever International funds focus on firms outside the United States. |
77. |
Which of the following is not true of global and international bond funds? |
A. | They may be subject to interest rate risk. |
B. | They may be subject to exchange rate risk. |
C. | Their expenses may be higher than those of domestic bond funds. |
D. | They are especially attractive to investors in a high tax bracket. |
Answer» D. They are especially attractive to investors in a high tax bracket. |
78. |
High yield (junk-bond funds focus on relatively risky bonds issued by firms that are subject to |
A. | default risk |
B. | interest rate risk |
C. | exchange risk |
D. | management risk |
Answer» A. default risk |
79. |
International bond funds |
A. | focus on bonds interest by non-U.S. firms or governments. |
B. | may hold bonds that offer a higher yield then the U.S. bound. |
C. | are subject to exchange rate risk. |
D. | All of the above correct. |
Answer» D. All of the above correct. |
80. |
_______ mutual funds invest in both foreign bonds and U.S. bonds. |
A. | International bonds |
B. | Index |
C. | Treasury bond |
D. | Global bond |
Answer» D. Global bond |
81. |
Technology funds focus on technology-based firms. Which of the following statements regarding those firms is not true? |
A. | Many of those firms are relatively young. |
B. | They have a low degree of risk. |
C. | They have the potential for a high return. |
D. | They do not have a consistent record of strong performance. |
Answer» B. They have a low degree of risk. |
82. |
Existing shares of closed-ended mutual fund companies are purchased |
A. | from the investments company directly. |
B. | from the investment company through a broker. |
C. | from other investors in the stock market. |
D. | from a bank. |
Answer» C. from other investors in the stock market. |
83. |
In calculation the net assets value (NAV) which of the following is true? |
A. | Dividends are subtracted and expenses added |
B. | Interest is subtracted and expenses are added. |
C. | dividends are added and expenses are subtracted |
D. | Interest and other expenses are not included |
Answer» C. dividends are added and expenses are subtracted |
84. |
To calculate the NAV, the market value of the portfolio liabilities is the dividend by the ______ to arrive at a per-share basis. |
A. | original number of shares |
B. | share currently issued by the fund |
C. | maximum shear to be issued |
D. | average number of shares incomparable funds. |
Answer» B. share currently issued by the fund |
85. |
An open-ended mutual fund may do all of the following except |
A. | sell shares directly to investors. |
B. | charge a fee to buy but not sell shares. |
C. | repurchase shares from investors who want to sell their shares. |
D. | have its shares traded on a New York Stock Exchange. |
Answer» D. have its shares traded on a New York Stock Exchange. |
86. |
The amount by which a close-ended fund's share price in the secondary market is above the fund's NAV is called the |
A. | market value |
B. | premium |
C. | discount |
D. | par value |
Answer» B. premium |
87. |
______ is a tax that is imposed by the government on companies based on dividend paid to a company's investors. |
A. | dividend distribution tax |
B. | return on investment tax |
C. | goods and services tax |
D. | corporate tax |
Answer» A. dividend distribution tax |
88. |
All dividends in Equity & Equity Oriented Funds will be taxed at _____ from 2018. |
A. | 5% |
B. | 10% |
C. | exempt up to 10% |
D. | not taxable at all |
Answer» B. 10% |
89. |
Sponsor must hold at least _______% of the AMCs networth. |
A. | 30 % |
B. | 40 % |
C. | 50 % |
D. | 60 % |
Answer» B. 40 % |
90. |
AMCs net worth has to be at least __________ |
A. | 5 Crore |
B. | 7 Crore |
C. | 10 Crore |
D. | 12 Crore |
Answer» C. 10 Crore |
91. |
At least _____ % of the AMC directors Should be independent . |
A. | 30 |
B. | 40 |
C. | 50 |
D. | 60 |
Answer» C. 50 |
92. |
The AMC and the Trustees enter into an _____ Agreement. |
A. | Investment Management |
B. | Memorandum of Association |
C. | Legal |
D. | None of the above |
Answer» A. Investment Management |
93. |
If ______ of unit holders approve , The service of the AMC can be terminated. |
A. | 50% |
B. | 75% |
C. | 60% |
D. | 40% |
Answer» B. 75% |
94. |
Scheme take over do not result in merger of ______. |
A. | Trusts |
B. | AMC |
C. | AMFI |
D. | All of the above |
Answer» B. AMC |
95. |
Any grievance against the AMC can be addressed to _______ |
A. | AMFI |
B. | DCA |
C. | Trustees |
D. | AMF |
Answer» B. DCA |
96. |
The UTI is governed by _________. |
A. | UTI Act |
B. | Company Act |
C. | Partnership Act |
D. | HUF Act |
Answer» A. UTI Act |
97. |
Listed mutual funds have to abide by __________ of the stock exchanges. |
A. | Listing Regulations |
B. | Legal |
C. | Internal |
D. | None of the above |
Answer» A. Listing Regulations |
98. |
The offer document of an open ended fund is valid for ______ years. |
A. | 1 |
B. | 2 |
C. | 3 |
D. | 2.5 |
Answer» B. 2 |
99. |
If equity markets move up, P/E tatio will move ________. |
A. | Up |
B. | Down |
C. | No change |
D. | None of the above |
Answer» A. Up |
100. |
If equity markets move down, dividend yield will move ________. |
A. | Up |
B. | Down |
C. | Sable |
D. | None of the above |
Answer» A. Up |
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