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

a.A piece of paper attached to the certificate
b. The return on investor would earn*
c.The amount rate of interest paid on par value of the bond
d.None of the above

27 . Are Overseas Corporate Bodies allowed to invest in Mutual Funds?
a.No
b. Yes*
c.If Ministry of Finance approves
d.If AMFI approves

28 . What document Mutual Fund distributors need to refer for finding out eligible category of investors in a particular Mutual Funds Scheme?
a.SEBI Regulations Manual
b. AMFI booklet
c.Offer document*
d.RBI Guidelines

29 . If the AMC is managing a fund for the 1st time, this info can be obtained in
a.Newspapers
b. SEBI
c.AMFI Newsletter
d.Offer document*

30 . Mutual Funds often use their own employees to mobilise funds from
a.Retail investors
b.High Networth individuals/institutional investors
c.All investors
d.Foreign investors

31 . Who is writer of the book “ The Intelligent Investor “?
a.Benjamin Graham*
b. Peter Lynch
c.John Templeton
d.Warren Buffet

32 . The transition phase of an investor’s wealth cycle is when the
a.Financial goals have been already met.
b.The investor has retired.
c.Financial goals are approaching
d.Investor suddenly gets a windfall

33 . Of these, which is an example of a passive fund management strategy
a.Duration Management
b.Buy and Hold
c.Credit Selection
d.Prepayment Selection

34 . The evaluation norm for non-investment grade, performing assets is done:
a.On YTM basis using the CRISIL evaluation methodology
b. On YTM basis with 25% discount
c.At 25% discount to the face value.*
d.At face value.

35 . Which of the subsequent is the disadvantage of the standard deviation
a.Standard deviation measures total risk, not just market risk
b.It is based on past returns, which does not necessarily indicate further performance.
c.It is an independent number
d.All kinds of the funds can be measured with the standard deviation

36 . When compared to Government Securities, the credit risk on corporate bonds is
a.Higher
b. Lower
c.Same
d.The 2 are not related*

37 . Constrains imposed by most of the funds on Cheque writing include
a.Requirement of minimum a/c balance after withdrawal
b. Specification of a minimum amount for which Cheque can be issued
c.Limit on the No of Cheque that are allowed to be issued in a month.
d.Both one & 2*

38 . tech. analysis tries to predict future movement of stock price by analyzing

Earning:   Approval pending.