Test Your NISM-Series-19B: Alternative Investment Funds (Category III) 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. personal property B. financial planning C. financial asset D. mutual fund

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

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

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

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

4. A securitisation company floated by a bank is NOT an AIF under the SEBI (Alternative Investment Funds) 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. Alternative Investment Funds which primarily invest in debt securities of listed or unlisted investee companies are known as _____________. (NISM workbook)

A. Infrastructure Funds B. Angel Funds C. Debt Funds D. Venture Capital Funds

7. The Category of Alternative Investment Funds which are permitted to take leverage positions, through Futures and Options (F&O) contracts, structured products, margin trading and arbitrage strategies, are known as _____________. (NISM workbook)

A. Category III AIFs B. All of the option given C. Category II AIFs D. Category I AIFs

8. SEBI introduced the SEBI (Alternative Investment Funds) Regulations on May 21, 2012. State whether True or False. (NISM workbook)

A. True B. False

9. Which of the following sections of the Private Placement Memorandum will most likely provide details on the prior experience of the Investment Manager of the Category III AIF? (NISM workbook)

A. Manager B. Redemption C. Terms of the Fund/Scheme D. Investment Objective and Strategy

10. Category III AIFs in India have been investing the funds faster, in order to generate alpha by employing diverse trading strategies. State whether True or False. (NISM workbook)

A. False B. True