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) .
| 101. |
Investments are accounted for on _______ date. |
| A. | Year end |
| B. | Quarter end |
| C. | Trade |
| D. | Half year end |
| Answer» C. Trade | |
| 102. |
Initial issue expenses cannot exceed _______% of amount mobilised. |
| A. | 5 |
| B. | 6 |
| C. | 4 |
| D. | 3 |
| Answer» B. 6 | |
| 103. |
Initial issue expenses of open-ended funds is amortised over a period not exceeding years_______% |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» A. 1 | |
| 104. |
Mutual funds cannot pay dividend out of _______. |
| A. | Net profit |
| B. | Net loss |
| C. | Unrealised profit |
| D. | Realised profit |
| Answer» C. Unrealised profit | |
| 105. |
An asset is non-performing if interest and/or principal are due for over ________ months. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» C. Three | |
| 106. |
An equity shares is considered non-traded if it is not traded for over _______ days. |
| A. | 15 |
| B. | 20 |
| C. | 25 |
| D. | 30 |
| Answer» D. 30 | |
| 107. |
Valuation of debt instrument with less than 182 days to maturity is done on _______ basis. |
| A. | Accrual |
| B. | Cash |
| C. | Real |
| D. | None of the above |
| Answer» A. Accrual | |
| 108. |
Illiquid securities should not exceed _________% of the net assets. |
| A. | 5 |
| B. | 7 |
| C. | 10 |
| D. | 15 |
| Answer» D. 15 | |
| 109. |
For an index fund, Ex-Marks will be ________%. |
| A. | 50 |
| B. | 70 |
| C. | 90 |
| D. | 100 |
| Answer» D. 100 | |
| 110. |
If fund is assuming higher risk than the market index, its beta will be ________. |
| A. | Greater than 1 |
| B. | Less than 1 |
| C. | Equal to 1 |
| D. | Equal to 2 |
| Answer» A. Greater than 1 | |
| 111. |
Graham’s strategy recommends ________% holding in debt funds and 50% holding in equity funds. |
| A. | 50 |
| B. | 75 |
| C. | 40 |
| D. | 60 |
| Answer» A. 50 | |
| 112. |
Expenses ratio is very important for _____. |
| A. | Debt fund |
| B. | Index fund |
| C. | Equity fund |
| D. | Currency fund |
| Answer» A. Debt fund | |
| 113. |
According to Bogle an investor’s exposure to debt investment should be equal to his ___. |
| A. | Sex |
| B. | Age |
| C. | Income |
| D. | Cast |
| Answer» B. Age | |
| 114. |
Higher expenses ratios lead to _______. |
| A. | Yield sacrifices |
| B. | Profit |
| C. | Income |
| D. | Wealth |
| Answer» A. Yield sacrifices | |
| 115. |
Closed ended funds were usually trading at _________ to NAV |
| A. | Par |
| B. | Premium |
| C. | Discount |
| D. | Free |
| Answer» C. Discount | |
| 116. |
If a single unit holder holds more than _________ of net assets , the number of Such unit holders and their percentage holding in the net assets have to be disclosed. |
| A. | 10 % |
| B. | 15 % |
| C. | 20 % |
| D. | 25% |
| Answer» D. 25% | |
| 117. |
If opening units 10,000 Units subscribe 3000, Units redeem 1000 then Closing units? |
| A. | 10,000 units |
| B. | 13,000 units |
| C. | 12,000 units |
| D. | 14,000 units |
| Answer» C. 12,000 units | |
| 118. |
If opening units 25,000 ,Units subscribe 7000, Units redeem 2000 then Closing units? |
| A. | 30,000 units |
| B. | 25,000 units |
| C. | 32,000 units |
| D. | 44,000 units |
| Answer» A. 30,000 units | |
| 119. |
If opening units 1,25,000 Units subscribe 2,00,000, Units redeem 50,000 then Closing units? |
| A. | 3,25,000 units |
| B. | 2,75,000 units |
| C. | 3,75,000 units |
| D. | 2,50,000 units |
| Answer» B. 2,75,000 units | |
| 120. |
NAV stands for |
| A. | Net Application Value |
| B. | Notional Assets Value |
| C. | Net Assets Value |
| D. | Net Assets |
| Answer» C. Net Assets Value | |
| 121. |
High yield bonds have ______ potentials. |
| A. | Low |
| B. | High |
| C. | Average |
| D. | none |
| Answer» B. High | |
| 122. |
Treasury bonds funds with short maturities have ______ default risk. |
| A. | High |
| B. | Low |
| C. | Average |
| D. | Nil |
| Answer» B. Low | |
| 123. |
Portfolio turnover is ______ for liquid funds. |
| A. | Low |
| B. | High |
| C. | Average |
| D. | Nil |
| Answer» B. High | |
| 124. |
The benchmark for a balanced fund is Equity index and _______ combined in the same Proportion. |
| A. | Market Index |
| B. | Debt Index |
| C. | Gold Index |
| D. | Currency Index |
| Answer» B. Debt Index | |
| 125. |
The AMC received no fees on funds are called as _______ |
| A. | Full Load |
| B. | Extra Load |
| C. | No Load |
| D. | Half Load |
| Answer» C. No Load | |
| 126. |
UTI Act was enacted in the year ______. |
| A. | 1975 |
| B. | 1955 |
| C. | 1963 |
| D. | 1995 |
| Answer» C. 1963 | |
| 127. |
Expense ratio for a funds should be as ______ as possible. |
| A. | High |
| B. | Low |
| C. | Average |
| D. | NIl |
| Answer» B. Low | |
| 128. |
Jensen’s Alpha focuses on _____________ |
| A. | Systematic Risk |
| B. | Unsystematic Risk |
| C. | Political Risk |
| D. | Legal Risk |
| Answer» B. Unsystematic Risk | |
| 129. |
A benchmark once chosen cannot be altered without _________ approval. |
| A. | Custodian |
| B. | AMFI |
| C. | Trustees |
| D. | RBI |
| Answer» C. Trustees | |
| 130. |
Tracking Error of _______ fund has to be minimized. |
| A. | Index Fund |
| B. | Debt Fund |
| C. | Guilt Fund |
| D. | Equity Fund |
| Answer» A. Index Fund | |
| 131. |
The ________ can issue offer documents on behalf of the trustees. |
| A. | AMC |
| B. | Custodian |
| C. | Agents |
| D. | AMD |
| Answer» A. AMC | |
| 132. |
Expenses incurred that are above the regulatory limit are borne by sponsor & _____ |
| A. | AMC |
| B. | Custodian |
| C. | Agents |
| D. | AMD |
| Answer» A. AMC | |
| 133. |
A fund with _____ Sharpe ratio than the market is outperforming the market. |
| A. | Lower |
| B. | Higher |
| C. | Average |
| D. | Nil |
| Answer» B. Higher | |
| 134. |
________ funds tends to have lower expense than other type of mutual funds. |
| A. | Equity funds |
| B. | Debt Funds |
| C. | Balance Funds |
| D. | Index funds |
| Answer» D. Index funds | |
| 135. |
Rupee cost averaging means investing fixed amount _________. |
| A. | Periodically |
| B. | Lump sum |
| C. | Yearly |
| D. | Half Yearly |
| Answer» A. Periodically | |
| 136. |
ETF stands for ____________. |
| A. | Exchange Traded Funds |
| B. | Even Traded Funds |
| C. | Exchange Transactions Funds |
| D. | Extra Traded Funds |
| Answer» A. Exchange Traded Funds | |
| 137. |
NFO stands for_____________ |
| A. | New Funds Offer |
| B. | Net Frauds in Office |
| C. | New Funds in Office |
| D. | Net Frauds Offer |
| Answer» A. New Funds Offer | |
| 138. |
If Holding Period return are 25% & period is 2 years then Annualized returns ____. |
| A. | 25% |
| B. | 12.5% |
| C. | 50% |
| D. | 37.5% |
| Answer» B. 12.5% | |
| 139. |
If Holding Period return are 20% & period is 2 years then Annualized returns ____. |
| A. | 20% |
| B. | 10% |
| C. | 40% |
| D. | 15% |
| Answer» B. 10% | |
| 140. |
Financial year for all mutual fund schemes ends on …………… |
| A. | 31st December |
| B. | 31st March |
| C. | 30th September |
| D. | 30th June |
| Answer» B. 31st March | |
| 141. |
Risk is less in …………………. |
| A. | Equity fund |
| B. | growth fund |
| C. | index fund |
| D. | debt fund |
| Answer» D. debt fund | |
| 142. |
Equity funds are exempt from long term capital gain tax when investments are held for at least ………… months from the date of acquisition. |
| A. | 6 |
| B. | 3 |
| C. | 9 |
| D. | 12 |
| Answer» D. 12 | |
| 143. |
……………… funds invest in companies of different sectors across the market. |
| A. | Sectoral |
| B. | Diversified |
| C. | Thematic |
| D. | Index based |
| Answer» B. Diversified | |
| 144. |
………… funds are an extension of sector funds. |
| A. | Value |
| B. | Diversified |
| C. | Thematic |
| D. | Index based |
| Answer» C. Thematic | |
| 145. |
………… funds use algorithmic, in which computer software takes buy/ sell decisions on the basis of formula |
| A. | Value |
| B. | Quant |
| C. | Thematic |
| D. | Arbitrage |
| Answer» B. Quant | |
| 146. |
Open-ended funds have to update offer document at least once in………… years |
| A. | 3 |
| B. | 2 |
| C. | 4 |
| D. | 5 |
| Answer» B. 2 | |
| 147. |
CAS stands for ………………….. |
| A. | Combined Account Statement |
| B. | Consolidated Account Statement |
| C. | Combined Account System |
| D. | Consolidated Account System |
| Answer» B. Consolidated Account Statement | |
| 148. |
Consolidated Account Statements is sent …………….. to investors in whose folios no transaction has taken place. |
| A. | every 2 months |
| B. | every 3 months |
| C. | every 4 months |
| D. | every 6 months |
| Answer» D. every 6 months | |
| 149. |
R-squared value range from 0 to …………… |
| A. | 0.5 |
| B. | 0.75 |
| C. | 1 |
| D. | 0.25 |
| Answer» C. 1 | |
| 150. |
A …………… risk refers to the possibility of a stock issuer to go bankrupt or facing heavy losses. |
| A. | Business |
| B. | Credit |
| C. | Capital |
| D. | Scheme |
| Answer» A. Business | |
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