McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Financial Markets (B F M) .
| 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» A. SEBI | |
| 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 | |
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