Association of Mutual Funds in India (AMFI) 2007 AMFI Mutual Fund Basic Module - Question Paper

None of the above


33. Certificates of Deposits (CDs) are issued by
(1-Mark)
Regional Rural Banks

Corporates

Scheduled commercial banks

None of the above


34. Value stocks
(1-Mark)
Have high current dividend yield

Yield high growth in earnings

Are currently under valued

None of the above


35. Mutual funds are allowed to lend
(1-Mark)
Loans

Securities

Physical assets

None of the above


36. An owner of preference shares is provided which of the subsequent rights
(1-Mark)
Voting rights

Fixed dividend income from post-tax profits

Voting rights and unlimited dividend income

No guaranteed rights


37. When interest rates for similar maturities' bonds are 11%, bond with a 9% coupon rate will sell
(2-Mark)
Above par

beneath par

At par

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
(2-Mark)
Current yield

tech. analysis

Yield to maturity

Fundamental analyis


39. Yield curve is also known as
(2-Mark)
Curve of Interest

Term Structure of Interest Rates

Curve that yields

None of the above


40. As per SEBI norms, a fund's investments, in the equity shares of any 1 company are restricted to
(2-Mark)
25% of Net Assets

10% of Net Assets

50% of Net Assets

100% of Net Assets


41. Transaction costs include
(1-Mark)
All expenses related to purchase and sale of securities

All expenses charged to the fund

Distribution expenses

None of the above


42. The Expense Ratio is of lowest importance in which of the subsequent
(1-Mark)
Debt fund

Index fund

Equity fund

Liquid fund


43. Turnover rates would be most relevant to analyze the performance of
(1-Mark)
Equity funds

Index funds

Debt funds

Value funds


44. Portfolio turnover rate refers to
(2-Mark)
Ratio of sales to the net assets of the fund

Ratio of purchases to the net assets of the fund

Earning:   Approval pending.