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

a) Rs. 20
b) Rs. 75
c) Rs. 55
d) Not possible to say

42) Which of the subsequent is untrue of the Automatic Reinvestment Plan?
a) The plan allows for automatic reinvestment of all income and capital gains.
b) Automatic reinvestment allows for the accumulation of additional units of the fund
c) The major benefit of automatic reinvestment is the compounding of returns
d) The benefit of automatic reinvestment is often lost, if reinvestment is subject to a heavy load

43) Constraints imposed by most funds on check-writing include:
a) Requirement of minimum account balance after withdrawal
b) Specification of a minimum amount for which check can be issued
c) Limit on the number of checks that are allowed to be issued in a month
d) Both one and two above

44) Which of the subsequent is actual of Systematic Withdrawal Plan (SWP)?
a) It allows investors to make Systematic withdrawal from his fund
b) It is suitable for investors seeking regular income
c) SWP is similar to Monthly Income Plan
d) Only one & 2

45) Choose the accurate Statement – option Investment Plans offered by fund allows investors:
a) Freedom with respect to investing 1 time or at regular intervals
b) Making transfers to various schemes with the identical fund family
c) Receiving income at specified intervals or accumulating distributions
d) All the above

46) The current market price of a 9%—coupon bond, when other bonds of similar maturities pay 11% will be:
a) Above par
b) Below par
c) At par
d) will be unrelated to other bonds

47) Yield and Price of a bond move:
a) In opposite directions
b) Together in the identical direction
c) In an unrelated fashion
d) In line with the inflation index

48) SEBI places a limit on a scheme’s investment in “investment grade rated” debt instruments of a single issuer, because:
a) Even investment grade securities carry risks of default by borrower
b) A scheme must diversify its holdings and thus decrease portfolio risk
c) Investment Grade ratings cannot be solely relied upon
d) SEBI wants to leave a few for investment in “non-investment grade” securities by the scheme

49) Technical Analysis tries to predict future movement of stock price by analyzing:
a) The financial workings of a Company
b) The stock price movements of a Company
c) Both of the above
d) None of the above

50) An investor purchased an open-end fund when its NAV was Rs. 20. 16 months later, its NAV stood at Rs. 22. The percentage NAV change in the fund was:

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