Test Your NISM-Series-19C: Alternative Investment Fund Managers 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. financial asset B. privately pooled C. personal property D. mutual fund

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

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

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

A. corporate B. financial C. privately pooled 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. False B. True

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 III B. Category II 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. NBFC fund C. Venture capital fund D. Investment Fund

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

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

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