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

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

68.As a part of borrowing policy, the subsequent need not be disclosed in an offer document
a. Purpose and circumstances of borrowing
b. Regulatory limits on borrowing
c. Potential risk to AMC and unit-holders
d. Names of lenders

69.Valuation norms for non-traded securities should be disclosed
a. At the end of every financial year
b. Every quarter
c. In the offer document at the time of launch of the scheme
d. Should not be disclosed, being confidential info

70.Procedure for redemption or repurchase need not
a. Be defined in the offer document
b. Include how redemption or repurchase price of units would be determined
c. Include names of centers where redemption can be effected
d. Indicate the redemption or repurchase price as at the end of the current fiscal year

71.The fund need not define its accounting policies in the offer document as these are of
no use to an investor
a. actual
b. False

72.The accounting policies of a fund should be in accordance with
a. GAAP
b. SEBI regulations
c. ICAI Guidelines
d. American GAAP

73.Tax treatment of investments does not
a. Form a part in the offer document
b. define the tax elements applicable to investors who invest in the fund
c. Form a part in the key info memorandum
d. Offer tax advice to investors

74.Documents available to investors for inspection do not include
a. Memorandum and Articles of Association of AMC
b. Consent of auditors and legal advisors
c. Investment management reports
d. Reports based on which true investments are made

75.Investor's rights under a scheme are
a. Uniform for all schemes of all funds
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b. Not described
c. Listed in the offer document
d. Available with stock exchanges

76.The offer document for a scheme should define how the NAV of the scheme is to be
computed
a. actual
b. False

77.An offer document contains an AMC's investor grievance's history for the past
a. 1 fiscal year
b. two fiscal years
c. three fiscal years
d. 6 months

78.Any pending cases or penalties levied on the sponsors of AMC should be disclosed in
the offer document
a. actual
b. False

79.Who among the subsequent are not eligible to invest in MF
a. Indian Companies
b. Banks
c. Non Banking Finance Companies
d. Foreign Citizens

80.NRI’s are eligible to invest in Mutual Funds
a. actual
b. False

81.The most important link ranging from Mutual Fund and Investors is
a. Government
b. SEBI
c. Fund distributors
d. AMFI

82.Are Overseas Corporate Bodies allowed to invest in Mutual Funds
a. No
b. Yes
c. If Ministry of Finance approves
d. If AMFI approves

83.Who among the subsequent are not Institutional Investors
a. Banks
b. Resident Individuals
c. Provident Funds
d. Non Banking Finance Companies

84.It is compulsory to use fund agents/intermediaries for investing MFs
a. actual
b. False
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85.Generally, which category of investors need advice for Investing in Mutual Funds
a. Non Banking Finance Companies
b. Insurance Companies
c. Foreign Institutional Investors
d. Individuals

86.Most eligible investors of Mutual Funds can broadly be grouped into either individual or
institutional investors
a. actual
b. False

87.Commission rates or loads applicable to big investors and small investors are
a. identical
b. various
c. Not charges to either
d. None of the above

88.What document Mutual Fund distributors need to refer for finding out eligible category of
investors in a particular Mutual Funds Scheme
a. SEBI Regulations Manual
b. AMFI booklet
c. Offer document
d. RBI Guidelines

89.As per AMFI figures, how many agents approximately, are there in India selling Mutual
Funds
a. 50,000
b. 1,00,000
c. 75,000
d. 1,50,000

90.Which Mutual Fund has majority of the agents selling its Mutual Fund units in India
a. LIC Mutual Fund
b. UTI Mutual Fund
c. SBI Mutual Fund
d. None of the above

91.Mutual Fund agents/distributors are not allowed to sell Financial Products other than
Mutual Funds
a. actual
b. False

92.Is Mutual Fund agents/distributors in India needed to pass any exam to qualify to
sell Mutual Fund Units
a. Yes, a test conducted by AMFI
b. Yes, a test conducted by SEBI
c. No
d. A postgraduate university course

93.How many major distributors Companies are there in India selling Mutual Fund units
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a. Approximately 9
b. Approximately 11
c. Approximately 10
d. Approximately 25

94.The offer document is not a legal document
a. actual
b. False

95.A copy of all modifications in the offer document has to be filed with SEBI
a. actual
b. False

96.The legal responsibility for the accuracy of the statements made in the offer document
lies with
a. SEBI
b. The AMC
c. AMFI
d. The Company legal regulations Board

97.Though the offer document of a scheme is prepared as per SEBI Regulations and is filed
with SEBI,SEBI does not certify the accuracy or adequacy of the document
a. actual
b. False

98.The subsequent need not be covered in a Key info Memorandum
a. Risk Factors
b. Opening, Closing and earliest Closing Date of the offer
c. Disclaimer Clause
d. Functions and responsibilities of the sponsor, trustees, AMC and custodian
responsibilities

99.The front page of an offer document need not cover
a. Opening, closing and earliest closing date of the offer
b. Disclaimer clause
c. Legal and regulator compliance
d. Price of units

100.A "glossary" of described Terms must be included in the offer document
a. actual
b. False

Earning:   Approval pending.