QUIZ

21st August, 2019

Q1. Diversified, Multicap, Thematic, Sectoral are categories of :

a) Hybrid Mutual Fund

b) Commodity Mutual Fund.
c) Debt Mutual Fund.
d) Equity Mutual Fund.

Ans.1: (d)

Q2 Mutual Fund Structure in India consists of:

a) Mutual Fund Trust, Sponsor, Custodian, Registrar, Transfer Agent, AMC

b) Mutual Fund Trust, Sponsor, RBI, SEBI, AMFI, AMC
c) RBI, SEBI, AMFI, MOF, SRO, Investors’ Association
d) RBI, SEBI, AMFI, MOF,SRO, Investors’ Association

Ans.2 (a)

Q3. Direct Mutual Fund Plans have:

(i) Potentially lower expense ratio and sold through the AMC.
(ii) Potentially lower expense ratio and sold through the distributor.
(iii) Potentially higher expense ratio and sold through the AMC.
(iv) Potentially higher expense ratio and sold through the distributor.

Which of the following options are true?

a) (i) and (ii) are correct.
b) (ii) and (iii) are correct.
c) (iii) and (iv) are correct.
d) (i) and (iv) are correct.

Ans. (d)

Q4. Unlimited Liability Company is a company in which:

 a) the members and directors are liable for the company’s debts in proportion
to their respective interests in the company.
b) the directors are liable for the company’s debts in proportion to their
respective interests in the company.
c) the members are liable for the company’s debts in proportion to their
respective interests in the company.
d) the members may be liable for the company’s debts in proportion to their
respective interests in the company.

Ans. (c)

Q5. A private company may:

(i) issue debentures to a maximum of 200 persons with a condition of no

invitation to the public for subscription.
(ii) issue debentures to any number of persons with a condition of no
invitation to the public for subscription.
(iii) issue debentures to a maximum of 200 persons unconditionally.
(iv) issue debentures to any number of persons unconditionally.

Ans.(b)

Q6. An increase in the Reverse Repo Rate has the following effect:

a) Decreases the liquidity of the banks.

b) Increases the liquidity of the banks.
c) May increase or decrease the liquidity of the banks.
d) Difficult to anticipate as liquidity is dependent on several other factors.

Ans. (a)