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) .
| 151. |
A …………… risk in a mutual fund refers to a situation when the issuer of a stock is unable to make timely payment of interest and principal to the investors. |
| A. | Business |
| B. | Credit |
| C. | Capital |
| D. | Scheme |
| Answer» B. Credit | |
| 152. |
…………….. risk refers to the investor losing the money invested in mutual funds. |
| A. | Business |
| B. | Credit |
| C. | Capital |
| D. | Scheme |
| Answer» B. Credit | |
| 153. |
…………….. risk refers to a risk that affects the entire country or a particular region or a certain industry. |
| A. | Market |
| B. | Credit |
| C. | Capital |
| D. | Scheme |
| Answer» A. Market | |
| 154. |
……………… risk refers to a risk when there is political changes or change in investment policy of the government. |
| A. | Market |
| B. | Credit |
| C. | Political |
| D. | Scheme |
| Answer» C. Political | |
| 155. |
……………………. Ratio determines how the return of the scheme has compensated and investor for the risk he has taken. |
| A. | Treynor |
| B. | Sharpe |
| C. | Sortino |
| D. | Information |
| Answer» C. Sortino | |
| 156. |
The risk of losing money invested in mutual funds is called ………… |
| A. | Capital risk |
| B. | scheme risk |
| C. | credit risk |
| D. | market risk |
| Answer» A. Capital risk | |
| 157. |
……………….. ratio is a measure of the risk-adjusted return of a financial security or asset or portfolio. |
| A. | Treynor |
| B. | Sharpe |
| C. | Sortino |
| D. | Information |
| Answer» D. Information | |
| 158. |
Returns from non-equity funds are treated as long term capital gains if investments are held for more than ………………. |
| A. | 4 years |
| B. | 2 years |
| C. | 3 years |
| D. | 5 years |
| Answer» C. 3 years | |
| 159. |
NAV is declared everyday by deducting ……………. expenses |
| A. | Recurring |
| B. | Transaction |
| C. | Exit load |
| D. | Entry load |
| Answer» A. Recurring | |
| 160. |
……………….. ratio is the percentage of total assets that are spent to run a mutual fund |
| A. | Treynor |
| B. | Sharpe |
| C. | Expense |
| D. | Information |
| Answer» C. Expense | |
| 161. |
…………. provides in detail scheme wise information about income and expenditure of mutual fund. |
| A. | Balance Sheet |
| B. | Revenue Statement |
| C. | Cash Flow Statement |
| D. | Fund Flow Statement |
| Answer» B. Revenue Statement | |
| 162. |
The returns earned from mutual funds are taxed under the head …………….. |
| A. | Income from House Property |
| B. | Salary Income |
| C. | Income from Capital gains |
| D. | Income from other sources |
| Answer» C. Income from Capital gains | |
| 163. |
When a security is not traded on any recognized stock exchange for a period of …. days prior to the valuation date, the scrip must be treated as a “non-traded “security. |
| A. | 30 days |
| B. | 40 days |
| C. | 45 days |
| D. | 60 days |
| Answer» D. 60 days | |
| 164. |
………….. ratio is the percentage of total assets that are spent to run a mutual fund. |
| A. | expense |
| B. | income |
| C. | Profit |
| D. | Turnover |
| Answer» A. expense | |
| 165. |
Equity related schemes are ………….. risky when compared to debt debt schemes. |
| A. | less |
| B. | equally |
| C. | more |
| D. | Cannot say |
| Answer» C. more | |
| 166. |
The accounting year for mutual funds ends on ……… of each year. |
| A. | 31st December |
| B. | 31st March |
| C. | 30th September |
| D. | 1st April |
| Answer» B. 31st March | |
| 167. |
……………….. of a mutual fund is the price at which units are bought or sold by investor. |
| A. | CP |
| B. | SP |
| C. | NAV |
| D. | NPV |
| Answer» C. NAV | |
| 168. |
In ………………………. Investors buy shares of Companies who have announced bonus issues, and subsequently sell the original holding at a loss once the stock becomes ex-bonus. |
| A. | Dividend stripping |
| B. | Bonus stripping |
| C. | Capital stripping |
| D. | Asset stripping |
| Answer» B. Bonus stripping | |
| 169. |
……………. is a measure of the volatility of a particular fund in comparison to the market as a whole |
| A. | Beta |
| B. | R-squared |
| C. | Standard deviation |
| D. | Alpha |
| Answer» A. Beta | |
| 170. |
……………….. measures the dispersion in return. |
| A. | Beta |
| B. | R-squared |
| C. | Standard deviation |
| D. | Alpha |
| Answer» C. Standard deviation | |
| 171. |
CAGR stands for ………………… |
| A. | Calculated Annual Growth Rate |
| B. | Compounded Annual Growth Rate |
| C. | Changed Annual Growth Rate |
| D. | Changed Annual Grown Rate |
| Answer» B. Compounded Annual Growth Rate | |
| 172. |
………………… are simply the annual gains that an investment has earned over a specific period of time. |
| A. | Annualized Return |
| B. | Absolute Return |
| C. | Holding period return |
| D. | None of the above |
| Answer» A. Annualized Return | |
| 173. |
The performance of a scheme is reflected in its …………….. |
| A. | Net asset value |
| B. | Face Value |
| C. | NPV |
| D. | AMC |
| Answer» A. Net asset value | |
| 174. |
…………………. is a myth about Mutual Fund Investment in India. |
| A. | Small amount is needed to invest in Mutual Funds |
| B. | Higher NAV is better |
| C. | Demat account is compulsory to invest in Mutual funds |
| D. | Big amount is needed to invest in Mutual Funds |
| Answer» C. Demat account is compulsory to invest in Mutual funds | |
| 175. |
Abridged version of OD is called ………….. |
| A. | OD |
| B. | NFO |
| C. | KIM |
| D. | CD |
| Answer» C. KIM | |
| 176. |
--------------------- is a supplementary document that contains additional information of the fund. |
| A. | SID |
| B. | SAI |
| C. | KIM |
| D. | OD |
| Answer» B. SAI | |
| 177. |
……………. approve the contents of the Offer document |
| A. | AMC |
| B. | Trustee |
| C. | Custodian |
| D. | Sponsor |
| Answer» B. Trustee | |
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