Sample Questions

SEBI Investor Awareness Mock Tests — 5 random MCQs with answers & explanations

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These 5 questions are randomly selected (standard MCQs only, not case-based).

Q1 What key feature of mutual funds arises because they buy and sell large amounts of securities at once, resulting in lower transaction costs per unit?

A. Liquidity
B. Tax Benefits
C. Simplicity
D. Economy of scale Correct Answer

Explanation:

Mutual funds benefit from economies of scale by trading in large volumes, which reduces the transaction costs incurred per investor compared to individual trading.

Marks: 1

Q2 What benefits are investors in securities entitled to get?

A. Only repayment of principal
B. Fixed salaries
C. Interest, dividend, capital appreciation, bonus shares, etc. Correct Answer
D. Exclusive company ownership

Explanation:

Investors are entitled to get benefits like interest, dividend, capital appreciation, bonus shares, etc..

Marks: 1

Q3 What does AMC stand for in the provided glossary?

A. Asset Management Company
B. Annual Market Convention
C. Annual Maintenance Charges Correct Answer
D. Automated Market Clearing

Explanation:

AMC stands for Annual Maintenance Charges in the glossary.

Marks: 1

Q4 What is the surplus of income over expenditure referred to as in personal finance?

A. Investment
B. Debt
C. Savings Correct Answer
D. Capital appreciation

Explanation:

Savings are explicitly defined as the difference between a person's income and their expenditure.

Marks: 1

Q5 What is the Pay-in day?

A. The day the trade is executed
B. The day when the brokers make payment or delivery of securities to the clearing corporation Correct Answer
C. The day when the clearing corporation makes payment or delivery to the broker
D. The day you place your order

Explanation:

Pay-in day is when brokers make payment or delivery of securities to the clearing corporation.

Marks: 1

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