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

a. True
b. False

31.An agent can offer and sell a fund's units at
a. Any price he selects
b. A price determined by competition among agents
c. A price based on demand for that fund's units
d. The public offering price currently in effect

32.All buy orders through an agent do not become valid till the fund accepts and confirms the orders
a. True
b. False

33.When an agent purchases, offers or sells units, ensuring compliance with applicable regulations is the responsibility of
a. The fund
b. The agent
c. AMFI
d. SEBI

34.The terms of appointment of a broker by a fund are
a. Laid down by SEBI
b. Laid down by AMFI
c. Not uniform to all funds
d. None of the above

35.The code of ethics for mutual funds published by AMFI
a. Is mandatory
b. Is in the form of recommended practices
c. Is unfavourable to investors
d. Does not cover distribution and selling practices

36.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


37.Distribution and sales practices are only partly regulated by SEBI at current
a. True
b. False

38.Which of the subsequent distribution channels is preferred by private mutual funds
a. Individual Agents
b. Small Distribution companies
c. Established distribution companies
d. The Internet

39.Which of the subsequent sales practices is prescribed by regulation
a. AMFI Code of Ethics
b. SEBI Advertising
c. AMFI's Code for Agents
d. None of the above

40.In a mutual fund investor's subscriptions are accounted for as
a. Liabilities
b. Deposits
c. Unit capital
d. None of the above

41.Investments made by a mutual fund on behalf of investors are accounted as
a. Assets
b. Liabilities
c. Capital
d. None of the above

42.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

43.Net asset Value (NAV) of a mutual fund scheme is described as the schemes
a. Assets minus liabilities
b. Assets per unit
c. Assets minus liabilities per unit
d. None of the above

44.The day on which NAV is computed by a fund is known as

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