Test Your NISM-Series-19A: Alternative Investment Funds (Category I and II) Distributors Mock Tests Knowledge in 5 Minutes

1. Alternative investment is defined as a _________ that does not fall into one of the conventional investment categories. (NISM workbook)

A. privately pooled B. personal property C. financial asset D. mutual fund

2. The following is an example of alternative investment. (NISM workbook)

A. Investment in Government securities B. Purchase of commercial real estate C. Investment in Exchange traded futures D. Investment in AAA listed bond

3. The SEBI (AIF) Regulations, 2012 define an AIF as a ________ structure. (NISM workbook)

A. privately pooled B. corporate C. financial D. NBFC

4. A securitisation company floated by a bank is not an AIF under the SEBI (AIF) Regulations 2012. State whether True or False. (NISM workbook)

A. True B. False

5. Alternative investment funds provide risk capital to businesses that have very high probability of failure due to their complex technologies. State whether True or False. (NISM workbook)

A. False B. True

6. An AIF that seeks to invest in listed securities on the stock exchange and foreign currency derivatives belongs to which category? (NISM workbook)

A. Category II B. Category III C. Category I

7. A fund that provides both equity and unsecured debt financing to early-stage companies would classify as which one of the following? (NISM workbook)

A. Unsecured bond fund B. Venture capital fund C. Investment Fund D. NBFC fund

8. An angel fund is a sub-category of a ________ fund. (NISM workbook)

A. collective investment B. private equity C. mutual D. venture capital

9. An AIF that does not fall under any of the three specified categories in the SEBI (AIF) Regulations 2012 is called a collective investment fund. State whether True or False. (NISM workbook)

A. True B. False

10. A private equity fund primarily provides unsecured working capital financing to a start-up company. State whether True or False. (NISM workbook)

A. True B. False