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

c. If the interest/installment becomes overdue for a period of 180 days
d. If the interest/installment becomes overdue for a period of 1 quarter


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

27. For a no-load fund , the AMC can change an investment management fee not exceeding
a. 3.50%
b. 4.00%
c. 2.25%
d. 0.50%

28. A funds NAV is affected by
a. Purchase and sale of investment securities
b. Valuation of all investment securities held
c. Accrual of income or expense
d. All of the above

29. If an investor switches from 1 scheme to a different scheme within the identical mutual fund
a. No load will be charged
b. Only entry load will be charged in the new scheme
c. Only exit load will be charged in the old scheme
d. Depends on AMC and varies ranging from various AMC

30. Which of the subsequent is untrue of an automatic reinvestment plan?
a. The plan allows for automatic reinvestment of all income and capital gains
b. Automatic reinvestment allows for accumulation of additional units of the fund
c. The major benefit of automatic reinvestment is compounding
d. Its benefit is often lost on account of the heavy load charge on the reinvestment

31. A passive fund manager
a. Researches stocks extensively
b. Does not buy and sell stocks often
c. Does not have to go through the process of stock selection
d. Does not have to track stocks

32. Coupon of a debt security refers to
a. A piece of paper attached to the certificate
b. The return-on investor would earn
c. The rate of interest paid on par value of the bond
d. None of the above

33. Certificates of Deposits (CDs) are issued by
a. Regional Rural Banks
b. Corporate
c. Scheduled commercial banks
d. None of the above

34. Value stocks
a. Have high current dividend yield
b. Yield high growth in earnings
c. Are currently under valued
d. Both a & c above

35. Mutual funds are allowed to lend
a. Loans
b. Securities
c. Physical assets
d. None of the above

36. An owner of preference shares is provided which of the subsequent rights
a. Voting rights
b. Fixed dividend income from post-tax profits
c. Voting rights and unlimited dividend income

Earning:   Approval pending.