Association of Mutual Funds in India (AMFI) 2008 AMFI Mutual Fund Basic Module Model Mock Test Q - Question Paper

1 . In the case of a rating downgrade, the yield applicable to the instruments so downgraded would
a. Rise
b. Fall
c. Remain the identical
d. The 2 are not related

2 . In order to decide an improper index as benchmark for an actively traded fund, 1 should consider
a. Fund size and portfolio composition
b. Whether the fund is broad based or focused on specific kind of securities
c. Investment objective of the fund
d. All of the above

3 . A bond has been issued with a call provision.This means the issuer may call it back whenever the interest
a. Fall
b. Rise
c. change
d. Are lower than the coupon rate

4 . The jurisdiction for resolving legal disputes concerning a mutual fund is
a. provided in the offer document
b. said in the stock exchanges
c. Decided by company legal regulations board
d. Decided by BSE

5 . Company legal regulations Board can hear complaints against
a. Agents
b. The board of trustees
c. Distributors
d. Stock exchanges where close-ended funds are listed

6 . Procedure for redemption or repurchase need not
a. Be defined in the offer document
b. Include how redemption or repurchase price of units would be determined
c. Include names of centers where redemption can be effected
d. Indicate the redemption or repurchase price as at the end of the current fiscal year

7 . In India, Mutual fund agent's rate and services are at current described by
a. SEBI rules
b. Stock exchange bye-laws
c. AMFI rules
d. Convention

8 . The AMFI code of ethics does not cover the subsequent prescriptions
a. Adequate disclosures should be made to the investors
b. Funds should be managed in accordance with said investment objectives
c. Conflict of interest should be avoided in dealings with directors or employees
d. Investors should approve every investment decision

9 . Liabilities in the balance sheet of a mutual fund are
a. In the form of long-term loans
b. Strictly short term in nature
c. Combination of long term and short term
d. Not allowed as per regulations

10 . For an open-ended fund, the repurchase price should not be lower than
a. NAV
b. 95% of NAV
c. 93% of NAV
d. 97% of NAV

11 . Which of the subsequent is not actual for Index Funds
a. These funds invests in the shares that constitute a specific index
b. The investment in shares is in the identical proportion as in the index
c. These funds take only the overall market risk
d. These funds are not diversified

12 . Changing asset allocation as per their views on future movements in asset prices is termed as

Earning:   Approval pending.