Mutual Fund Management Set 4 MCQs

Q1 | The difference between an international and a global fund is

global funds invest in both U.S. firms and those of other countries wherever International funds focus on firms outside the United States.

International funds invest in U.S. firms and those of other countries while global funds invest only in foreign firms.

international funds in Treasury securities but no U.S. firms while global funds invest in both.

there is no difference except in name.

Q2 | Which of the following is not true of global and international bond funds?

They may be subject to interest rate risk.

They may be subject to exchange rate risk.

Their expenses may be higher than those of domestic bond funds.

They are especially attractive to investors in a high tax bracket.

Q3 | High yield (junk-bond funds focus on relatively risky bonds issued by firms that are subject to

default risk

interest rate risk

exchange risk

management risk

Q4 | International bond funds

focus on bonds interest by non-U.S. firms or governments.

may hold bonds that offer a higher yield then the U.S. bound.

are subject to exchange rate risk.

All of the above correct.

Q5 | _______ mutual funds invest in both foreign bonds and U.S. bonds.

International bonds

Index

Treasury bond

Global bond

Q6 | Technology funds focus on technology-based firms. Which of the following statements regarding thosefirms is not true?

Many of those firms are relatively young.

They have a low degree of risk.

They have the potential for a high return.

They do not have a consistent record of strong performance.

Q7 | Existing shares of closed-ended mutual fund companies are purchased

from the investments company directly.

from the investment company through a broker.

from other investors in the stock market.

from a bank.

Q8 | In calculation the net assets value (NAV) which of the following is true?

Dividends are subtracted and expenses added

Interest is subtracted and expenses are added.

dividends are added and expenses are subtracted

Interest and other expenses are not included

Q9 | To calculate the NAV, the market value of the portfolio liabilities is the dividend by the ______ to arriveat a per-share basis.

original number of shares

share currently issued by the fund

maximum shear to be issued

average number of shares incomparable funds.

Q10 | An open-ended mutual fund may do all of the following except

sell shares directly to investors.

charge a fee to buy but not sell shares.

repurchase shares from investors who want to sell their shares.

have its shares traded on a New York Stock Exchange.

Q11 | The amount by which a close-ended fund's share price in the secondary market is above the fund's NAVis called the

market value

premium

discount

par value

Q12 | ______ is a tax that is imposed by the government on companies based on dividend paid to a company'sinvestors.

dividend distribution tax

return on investment tax

goods and services tax

corporate tax

Q13 | All dividends in Equity & Equity Oriented Funds will be taxed at _____ from 2018.

5%

10%

exempt up to 10%

not taxable at all

Q14 | Sponsor must hold at least _______% of the AMCs networth.

30%

40%

50%

60%

Q15 | AMCs net worth has to be at least __________

5 Crore

7 Crore

10 Crore

12 Crore

Q16 | At least _____ % of the AMC directors Should be independent .

30

40

50

60

Q17 | The AMC and the Trustees enter into an _____ Agreement.

Investment Management

Memorandum of Association

Legal

None of the above

Q18 | If ______ of unit holders approve , The service of the AMC can be terminated.

50%

75%

60%

40%

Q19 | Scheme take over do not result in merger of ______.

Trusts

AMC

AMFI

All of the above

Q20 | Any grievance against the AMC can be addressed to _______

AMFI

DCA

Trustees

AMF

Q21 | The UTI is governed by _________.

UTI Act

Company Act

Partnership Act

HUF Act

Q22 | Listed mutual funds have to abide by __________ of the stock exchanges.

Listing Regulations

Legal

Internal

None of the above

Q23 | The offer document of an open ended fund is valid for ______ years.

1

2

3

2.5

Q24 | If equity markets move up, P/E tatio will move ________.

Up

Down

No change

None of the above

Q25 | If equity markets move down, dividend yield will move ________.

Up

Down

Sable

None of the above