Association of Mutual Funds in India (AMFI) 2007 AMFI Mutual Fund Basic Module Model Mock Test - exam paper

c. The fee the agent charges to the investor
d. The expenses incurred by fund managers for marketing a mutual fund scheme

27. A passive fund has the subsequent feature
a. A passive fund tracks the index
b. A passive fund matches the performance if the index
c. A passive fund chooses the stocks that are current in the index
d. All of the above

28. A growth manager looks for
a. High current income
b. Undervalued stocks
c. Above avg. earnings growth
d. None of the above

29. 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
d. No guaranteed rights

30. Continuous tracking of the companies in which a mutual fund has invested is done by
a. Continuous tracking systems
b. Equity analysts
c. Trustees
d. Security dealers

31. Dividend yield for a stock is
a. Dividend per share
b. Dividend per face value
c. Dividend per share to current market price
d. None of the above

32. Which of the subsequent is applicable to the debt market in India?
a. The debt market is a wholesale market
b. There are large players like banks, financial institutions, mutual funds, etc
c. Government securities are traded on a large scale
d. All of the above

33. A bond with a coupon of 9% when interest rates for similar maturities are 11% will sell
a. Above par
b. Below par
c. At par
d. At a price unrelated to the prevailing interest rate

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

35. Current yield relates interest on a security to
a. Its current market price
b. Its face value
c. Its fair value
d. The current price of T-Bills

36. A mutual fund may transfer investments from 1 scheme to a different
a. Not at all
b. At current market rates
c. At cost price
d. At a fixed premium over market rate

37. Mutual funds are allowed to borrow
a. Freely to meet their requirements
b. For investment purposes only
c. Only to meet redemption demands
d. Not allowed at all

38. Which of the subsequent measures are not taken by SEBI for protecting investors of mutual funds
a. Mandating minimum levels of diversification for mutual funds
b. Ensuring that the funds are not used to favour a few companies
c. Tracking the securities that every fund has Invested in
d. Ensuring that the funds are invested in approved securities only

Earning:   Approval pending.