1. The term ‘Mutual Fund’ refers to
(a) the business of acquisition, holding, management, trading or disposal of securities, participation certificated or any other instruments, income or growth participation business and unit trust scheme.
(b) fund created by commercial banks for trading in shares
(c) fund created by an enterprise to meet out super animation liability of the enterprise
2. Which of the following is the first commercial bank who had launch a mutual fund?
(a) State bank of India
(b) Canara bank
(c) Indian bank
(d) Bank of India
(e) Indian overseas bank
3. Which of the following statement about Mutual funds are correct?
(a) Distribution of any income in advance on a monthly basis or otherwise is not permitted
(b) Mutual funds are listed in stock exchanges
(c) Lock in period for repurchase of units should not be more than 36 years
4. The main function of Mutual funds are
(a) collection of funds from a large number of investors
(b) Investment of funds so collected in capital markets
(c) Holding investment in trust, and to diversify the risk in the investment, proper management of portfolio with an object to optimize the returns
5. An open ended fund means
(a) The fund exists for perpetuity. There is no ceiling on the amount to be collected or raised
(b) Investors are assured of dividends, capital appreciation and safety of their investment
(c) A repurchase facility close to net asset value (NAV)
6.A close-ended fund means
(a) The corpus is of fixed size with a definite redemption period
(b) Listing on stock exchanges provides easy liquidity
(c) The market price is always below the net asset value
7.An offshare fund is
(a) a fund established outside the country
(b) a mutual fund which is stipulated at sea shore
(c) a fund meant for development of oceans and sea shores
(e) all of these
8.Mutual funds are vehicles for collective investment that pool the savings of many investors for
(a) Investment in securities, according to stated objective and the profits are shared equally among its participants in proportion to their holdings
(b) It brings together the investors who have surplus money to invest corporate entities who need the money to their projects
(c) the fund collects money from the members and invests them in diversified portfolio of financial assets
9. Which of the following organizations is the Mutual Fund Market regulator?
10. In the term called as AMFI, what do you mean by “M”?
(e) none of the above