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

charge on the reinvestment

26.Constraints imposed by most funds on check writing are :
a. Account balance should not fall beneath the minimum capital needed
b. Checks issued must be for at lowest the minimum amount specified
c. Number of checks per month must not exceed a specified number
d. Both a & b above

27.The performance of a fund is largely measured by the success of
a. The marketing function
b. The operations function
c. The portfolio market function
d. None of the above

28.MFs generally invest in securities which are:
a. Unlisted
b. Market-traded
c. Thinly traded
d. Privately placed

29.Which of the subsequent is not an equity instrument
a. Preference shares
b. Equity warrants
c. Ordinary debentures
d. Convertible debentures

30.The drawback of an ordinary share is
a. Possibility of capital appreciation
b. Ownership privilege of the company
c. Guaranteed dividend income
d. No guaranteed income or security

31.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

32.Market capitalisation of a company is computed by multiplying the number of outstanding
shares by
a. Rs.10
b. Face value of every share
c. Current market value of every share
d. Dividend yield

33.The Price/Earnings( P/E) Ratio is an important measure of a company's anticipated
performance. It is computed using:
a. Market price and dividend
b. Market price and earning per share
c. Market capitalisation and dividend
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d. Market price and face value

34.A Company whose earnings are strongly related to the state of economy is known as
a. Economy stocks
b. Cyclical Stocks
c. Value Stocks
d. Growth Stocks

35.A Growth stock refers to shares of a company whose earnings are projected to grow at
the normal market rates
a. actual
b. False

36.Which of the subsequent is generally actual for a growth stock
a. Steady capital appreciation and steady dividends yields
b. High capital appreciation and high dividend yields
c. High capital appreciation but low dividend yields

Earning:   Approval pending.