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Question 1 reset
A mutual fund investor is called a unit holder just as an investor in equity shares is called a share holder. State True or False:
Question 2 reset
Convertible debentures can be fully or partly converted into equity shares.
Question 3 reset
A portfolio is a collection of securities. These securities can be equity shares, bonds, debentures, deposits, money market instruments, derivatives and the like. State True or False:
Question 4 reset
Companies may raise capital in a form that combines the features of both debt and equity. These are called hybrid instruments. State True or False:
Question 5 reset
Mutual funds can invest only in marketable securities, or securities that can be traded in a market and therefore have a market price. State True or False:
Question 6 reset
Mutual fund products can be categorized based on ____
Question 7 reset
The market value of the portfolio is known as the assets under management (AUM) of the fund. State True or False:
Question 8 reset
Convertible debentures pay interest like any other debt instrument till the date of conversion into equity shares. State True or False:
Question 9 reset
Net assets refer to the net value of the portfolio, after charging the daily Fund Recurring Expenses (FRE). State True or False:
Question 10 reset
Bonds with sinking fund provisions after the maturity of the bond.
Question 11 reset
When we refer to total assets, we are referring to the market value of the mutual fund portfolio. State True or False:
Question 12 reset
Preference shares resemble debt instruments because they offer pre‐determined rate of dividend. State True or False:
Question 13 reset
SEBI is the apex regulator of the securities market and also responsible for its orderly growth and protection of the investor’s interests. State True or False:
Question 14 reset
Issuing and redeeming units of mutual fund is the role of the ____
Question 15 reset
The RBI, as the manager of public debt, is responsible for the primary issue of government securities, all contracts involving such securities and money market instruments State True or False:
Question 16 reset
In case the company makes losses or the profits made by the company is ploughed back for the expansion and other operations of the company, the shareholders may not get a dividend. State True or False:
Question 17 reset
SEBI was established on April 12, 1992 in accordance with the provisions of the SEBI Act, 1992. State True or False:
Question 18 reset
Which of the following organizations regulates the activities of insurance industry in India?
Question 19 reset
Registrar and Transfer (R&T) Agents are identified as ‘intermediaries’ by the SEBI Act and are regulated by SEBI. State True or False:
Question 20 reset
Equity shares are issued for perpetuity. State True or False:
Question 21 reset
The SEBI (Registrars to an Issue and Transfer Agents) Regulations came into effect in 1993 and is amended periodically. State True or False:
Question 22 reset
Debt instruments are listed and traded on the secondary markets.
Question 23 reset
The first public offer of shares made by a company is called an Initial Public Offer (IPO). State True or False:
Question 24 reset
Equity capital is not secured by the assets of the company. State True or False:
Question 25 reset
An IPO is made by a company whose shares are not listed on a stock exchange. State True or False:
Question 26 reset
Which of the following is permitted to invest in mutual funds in India?
Question 27 reset
Once the IPO is made, the shares have to be compulsorily listed and the shares become available for trading on the stock exchange. State True or False:
Question 28 reset
Equity shareholders are entitled to share in the residual profits of the company. State True or False:
Question 29 reset
An IPO can either be a fresh issue of shares or it can be an offer for sale of existing shares by any of the existing share holder. State True or False:
Question 30 reset
A change in the personal information implies creating a new folio.
Question 31 reset
The SEBI (Buy Back of Securities) Regulations, 1998 apply to listed companies and the rules issued by the Ministry of Company Affairs apply to unlisted Companies. State True or False:
Question 32 reset
Dividend declared by a company is not pre‐fixed in terms of the percentage of the dividend or the period when it will be declared. State True or False:
Question 33 reset
If the buy back is through a book building process then the company has to appoint a merchant banker to manage the issue. State True or False:
Question 34 reset
Information in the ____ is common to all schemes of a mutual fund.
Question 35 reset
A rights issue is an issue of fresh capital made to the existing investors of a company. State True or False:
Question 36 reset
Dividend for a company is usually declared at the end of a year which is called the final dividend. State True or False:
Question 37 reset
In a rights issue the company has to decide on the proportion of fresh shares to be issued to the investors. State True or False:
Question 38 reset
Real estate funds can invest directly in property.
Question 39 reset
An investor’s percentage holding in the company remains the same after the rights issue unless the shares are foregone by the investor. State True or False:
Question 40 reset
The dividend declared by a company is a percentage of the face value of its shares. State True or False:
Question 41 reset
Dividend distribution tax is applicable at ____ % on investors other than individuals and HUFs.
Question 42 reset
When we talk of shares of a company we usually refer to the ordinary shares of a company. State True or False:
Question 43 reset
Switch transaction is a combination of purchase and repurchase transaction happening simultaneously.
Question 44 reset
Preference shareholders are paid dividend only if the company has sufficient profits. State True or False:
Question 45 reset
No tax is applicable on the dividend that an investor receives form a scheme.
Question 46 reset
FCCBs are a foreign currency (usually dollar) denominated debt raised by companies in international markets but which have the option of converting into equity shares of the company before they mature. State True or False:
Question 47 reset
Open-ended schemes offer exit option through a stock exchange.
Question 48 reset
An Indian company that is not eligible to raise equity capital in the domestic market is not eligible to make an FCCB issue either. State True or False:
Question 49 reset
A transaction slip can not be used to make a fresh purchase.
Question 50 reset
FCCBs are regulated by RBI notifications under the Foreign Exchange Management Act (FEMA). State True or False:
Question 51 reset
A ceiling limits the minimum interest that an investor will receive from a floating rate bond.
Question 52 reset
Convertible debentures may be fully or partly converted into equity shares. State True or False:
Question 53 reset
Preference share holders get preference over debenture holders in the payment of dividend.
Question 54 reset
Investors in convertible debentures may be given the option of not converting the holding into shares. State True or False:
Question 55 reset
Once the money is pooled from the investors, the fund defines the investment objective and strategy of the scheme.
Question 56 reset
A sponsored DR issue has existing shareholders offering their shares for conversion into DRs. State True or False:
Question 57 reset
The sponsor contributes to the capital of the AMC.
Question 58 reset
The benefits from the fund accrue to all investors in proportion to their share in the pool. State True or False:
Question 59 reset
Which of the following organisations is responsible for the issue of Government Securities.
Question 60 reset
When investors subscribe to a mutual fund, they buy a share in the pool of funds. This share is called a unit of the mutual fund scheme. State True or False:

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