Association of Mutual Funds in India (AMFI) 2007 AMFI Mutual Fund Basic Module MODEL MOCK TEST -university question paper

1. A close-ended mutual fund has a fixed:
a. NAV
b. Fund size
c. Rate of return
d. Number of distributors

2. The maximum load that a fund can charge is determined by the:
a. AMC
b. SEBI
c. AMFI
d. Distribution agents based on demand for the fund

3. The amount needed to buy 100 units of a scheme having an entry load of 1.5% and NAV
OF Rs.20 is:
a. Rs.2000
b. Rs.2015
c. Rs.1985
d. Rs.2030

4. A gilt fund is a special kind of fund that invests:
a. In very high quality equity only
b. In instruments issued by companies with a sound track record
c. In short-term securities
d. In government securities only

5.Of the subsequent fund types, the highest risk is associated with
a. Balanced Funds
b. Gilt Funds
c. Equity Growth Funds
d. Debt Funds

6.The NAV of a mutual fund:
a. Is always constant
b. Keeps going up at a steady rate
c. Fluctuates with market price movements
d. Cannot go down at all

7.An open-ended mutual fund is 1 that has:
a. An choice to invest in any type of security
b. Units available for sale and repurchase at all times
c. An upper limit on its NAV
d. A fixed fund size

8.An investor in a close-ended mutual fund can get his/her money back by selling his/her
units:
a. Back to the fund
b. To a special trust at NAV
c. On a stock exchange where the fund is listed
d. To the agent through which he/she subscribed to the units of the fund
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9.The "load" charged to an investor in a mutual fund is
a. Entry fee
b. Cost of the paper on which the unit certificates are printed
c. The fee the agent charges to the investor
d. The expenses incurred by fund managers for marketing a mutual fund scheme

10.A mutual fund is owned by
a. The Govt. of India
b. SEBI
c. All its investors
d. AMFI

11.Units from an open-ended mutual fund are bought
a. On a stock exchange
b. From the fund itself
c. From AMFI
d. From a stock broker

12.A mutual fund is not
a. Owned jointly by all investors
b. A company that manages investment portfolios of high net worth individuals
c. A pool of funds used to purchase securities on behalf of investors
d. A collective investment vehicle

13."Load" cannot be recovered
a. At the time of the investor's entry into the fund
b. As a fixed amount every year
c. At the time the investor exits the fund
d. From the fund's distribution agent

14.The most important advantage of a money market mutual fund is
a. Quick capital appreciation

Earning:   Approval pending.