Test Your NISM-Series-5D: Mutual Fund - Specialized Investment Fund (SIF) Distributors Knowledge in 5 Minutes

1. An Index fund is characterised by a Beta of 1. Is this statement True or False?

A. False B. True

2. Which among the following investment avenues does not offer income on a regular basis? (NISM workbook)

A. Physical Gold B. Stocks C. Real estate D. Debentures

3. Which amongst the following asset categories can also be purchased for consumption purposes apart from an investment? (NISM workbook)

A. Stocks B. Real estate C. Debentures D. Bonds

4. The purchasing power of currency changes on account of which of the following? (NISM workbook)

A. Diversification B. Inflation C. Asset allocation D. Compound interest

5. What is the real rate of return? (NISM workbook)

A. Return that the investor gets after payment of all expenses B. Return that the investor gets after adjusting the risks C. Return that the investor gets after taxes D. Return that the investor gets after adjusting inflation

6. When the interest rate in the economy increases, the price of existing bonds __ . (NISM workbook)

A. Fluctuate B. Increases C. Remains unchanged D. Decreases

7. indicates how much money can be generated per unit of mutual fund in case the scheme is liquidated. (NISM workbook)

A. Market price B. Exit load C. Asset Under Management D. Net Asset Value

8. Each mutual fund scheme must have a stated investment objective. State whether True or False. (NISM workbook)

A. True B. False

9. Which of the following is an advantage of mutual funds? (NISM workbook)

A. Customized portfolio B. Convenience to buy stocks and bonds directly from the mutual fund C. Economies of scale D. Direct control over individual stock selection

10. The transparency levels in mutual funds are very low. State whether True or False. (NISM workbook)

A. False B. True