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

d. No guaranteed rights

37. When interest rates for similar maturities are 11%, a bond with a 9% coupon rate will sell
a. Above par
b. Below par
c. At par
d. At a price unrelated to the interest rates for similar securities

38. To compare bonds with various coupon rates, maturities and prices, investors would use
a. Current yield
b. Technical analysis
c. Yield to maturity
d. Fundamental analysis

39. Yield curve is also known as
a. Curve of Interest
b. Term Structure of Interest Rates
c. Curve that yields
d. None of the above

40. As per SEBI norms, a fund's investments, in the equity shares of any 1 company are restricted to
a. 25% of Net Assets
b. 10% of Net Assets
c. 50% of Net Assets
d. 100% of Net Assets

41. Transaction costs include
a. All expenses related to purchase and sale of securities
b. All expenses charged to the fund
c. Distribution expenses
d. None of the above

42. The Expense Ratio is of lowest importance in which of the subsequent
a. Debt fund
b. Index fund
c. Equity fund
d. Liquid fund

43. Turnover rates would be most relevant to analyze the performance of
a. Equity funds
b. Index funds
c. Debt funds
d. Value funds

44. Portfolio turnover rate refers to
a. Ratio of sales to the net assets of the fund
b. Ratio of purchases to the net assets of the fund
c. Ratio of sales or purchases (which ever is lower) to net assets of the fund
d. Ratio of sales or purchases (which ever is higher) to net assets of the fund

45. The rule of 72 is used to
a. Calculate entry load of a scheme
b. Calculate the period in which an investment will double at a provided rate of return
c. Calculate the rate at which money will grow to double in a provided period
d. Both b and c

46. If there is an entry load in a scheme, the investors return
a. Will increase to the extent of load
b. Will not change because there will not be any exit load
c. Will decrease to the extent of load
d. None of the above

47. As per SEBI, mutual funds can borrow for short term to the extent of
a. Total net assets
b. 50% of net assets
c. 25% of net assets
d. 20% of net assets

48. When selling a mutual fund, a good agent would never
a. Describe the past performance of the scheme

Earning:   Approval pending.