Nism Ii B - Registrar - Last Day Test 2

NISM SERIES II B - REGISTRARS TO AN ISSUE & SHARE
TRANSFER AGENT (MUTUAL FUNDS) EXAM

NISM SERIES IIB – REGISTRAR TO AN ISSUE
(MUTUAL FUND) LAST DAY REVISION TEST 2
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with 50% as passing marks. The question paper will consist of 100 multiple choice questions. There is 0.25%
negative marking. The time duration is 120 Minutes.
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LAST DAY REVISION TEST 2.
Question 1 All short-term gains are taxed at 15%- State True or False ?
(a) TRUE
(b) FALSE
Question 2 What type of tax will be applicable if the investor sells his equity
investments after one year of purchase ?
(a) Short term Capital Gains Tax
(b) Medium term Capital Gains Tax
(c) Long term Capital Gains Tax
(d) Securities Transaction Tax
Correct Answer 1 FALSE

Answer Short term capital gains (STCG) for equity-oriented funds are taxed at
Explanation 15%. In case of all other funds, STCG is taxed at the applicable rate of
tax for the investor.
Correct Answer 2 Long term Capital Gains Tax

Answer Capital gains are taxed as short term capital gains (STCG) if the investor
Explanation has held the investment for a period less than 1 year.
If the holding period is for more than 1 year, the gain is taxed as long
term capital gain (LTCG).
Question 3 The face value of a bond is decided by the _______ but the market value is
decided by ______ .
(a) issuer , market forces
(b) SEBI , Stock Markets
(c) Board of Directors of the issuer , BSE
(d) issuer, stock exchange
Question 4 What does the NAV of a fund reflect ?
(a) It reflects the current value of its market operations
(b) It reflects the current value of its unit capital
(c) It reflects the current value of its assets
(d) It reflects the current value of its investment portfolio
Correct issuer , market forces

Answer 3
Answer The issuer of the bond will decide the facevalue of the bond.
Explanation
However the market value depends on lot of market forces like changes in interest rates,
future outlook, time to maturity etc. etc.
Correct It reflects the current value of its investment portfolio

Answer 4
Answer The value of the investors’ unit holdings also changes along with the market value of
Explanation the portfolio. The current market value per unit is called the net asset value (NAV). NAV
can move up or down, depending upon whether the value of the investment portfolio has
moved up or down.
Question 5 An individual investor who is under ____ years of age is called a minor.
(a) 16
(b) 18
(c) 21
(d) 23
Question 6 In case of NRI applications with cheque, cheque is drawn on ______

account.
(a) NRO
(b) NRE
(c) FCNR
(d) All of the above
Correct Answer 5 18
Answer Investors above 18 years of age are classified as resident individuals. An

Explanation individual investor who is under 18 years of age is called a minor.
Correct Answer 6 All of the above
Answer In case of NRI applications with cheque, cheque is drawn on NRE (Non
Explanation resident external) or NRO (Non resident ordinary) or FCNR (Foreign
currency non resident) account.
Question 7 The risk and return of the fund primarily depend on the _______ of the
fund.
(a) Trustees
(b) Fund Manager
(c) type of investors
(d) investment portfolio
Question 8 Diversified Equity Mutual Funds are funds that can invest in the broad
equity markets - True or False ?
(a) TRUE
(b) FALSE
Correct investment portfolio

Answer 7
Answer Fund managers invest the pool of money into securities such as equity and debt,
Explanation according to the stated investment objective of the fund.
The risk and return of the fund depend on the investment portfolio of the fund. For eg.
the risk and return of a equity mutual fund will always be high as compared to debt fund.
Correct TRUE
Answer 8
Answer Diversified Equity Mutual Funds are funds that can invest in the broad equity markets,
Explanation without any restrictions.
These funds also feature a lower risk, compared to equity funds that invest in a specific
sector or segment of equity markets.
Question 9 What is the meaning of the 'coupon' of a debenture ?
(a) It is the rate of interest applied to the face value of debenture
(b) It is the discount on the debenture
(c) It is the price in the secondary market
(d) It is the amount of interest in rupees
Question 10 Preference Share holders have a preference in the payment of dividend

over debenture holders and in the return of capital, if the company is
wound up - State True or False ?
(a) TRUE
(b) FALSE
Correct It is the rate of interest applied to the face value of debenture

Answer 9
Answer Coupon rate is basically the rate of interest.
Explanation
Correct FALSE
Answer 10
Answer Preference share holders have a preference in the payment of dividend over ordinary
Explanation equity shares and in the return of capital, if the company is wound up.
Question 11 Who provides collection services to Mutual Funds ?
(a) R&T Agents
(b) Investor Service Centers (ISC)
(c) Custodians
(d) Banks
Question 12 Once the NFO closes and the scheme reopens for continuous offer, an
investor can ______ .
(a) Only sell the units
(b) First buy and than sell the units
(c) Only buy the units
(d) Both buy and sell units
Correct Banks
Answer 11
Banks provide collection services to mutual funds. Investor cheques and drafts are
Answer collected into the mutual fund scheme accounts by banks.
Explanation
Correct
Answer 12 Both buy and sell units
Answer After the NFO, when a scheme re-opens, the continuous offer is for both purchase and
Explanation redemption (selling) of units.
Question 13 How are the changes to the content in an offer document communicated
to the investors ?
(a) By letters to all investors
(b) By an Addendum
(c) By a Circular
(d) No need to inform the change in content
Question 14 What are High-yield Debt Funds also known as ?
(a) Risky Funds
(b) Floating Rate Funds
(c) Junk bond Funds
(d) Income Funds
Correct By an Addendum
Answer 13
Answer The AMC issues an addendum which is attached to the existing SID. AMCs generally
Explanation send the copy of the addendum to the Investor Service Centers for the information of
investors.
Correct Junk bond Funds

Answer 14
Answer High-yield Debt Funds funds seek higher interest income by investing in debt instruments
Explanation that have lower credit ratings and therefore higher risk of default.
Lower the credit rating, higher the interest a borrower pays. These high-yield funds and
are also called as junk bond funds.
Question 15 In which of these mutual funds can a investor get the benefit of Sec 80 C ?
(a) Debt Funds
(b) Balanced Funds
(c) ELSS Funds
(d) All Equity Funds
Question 16 Who issues the Permanent Account Number (PAN) ?
(a) SEBI
(b) Reserve Bank of India
(c) AMFI
(d) Income Tax Office
Correct ELSS Funds

Answer 15
Answer Equity linked saving schemes (ELSS) give tax benefits to the investors on their
Explanation investment.
Investment up to a certain limit in a year in such funds can be deducted from taxable
income of individual investors, as per Section 80C of the Income Tax Act.
Correct Income Tax Office

Answer 16
Answer Permanent Account Number (PAN) is an identification number issued by the Income
Explanation Tax authorities. PAN has been notified as the single identification number for all financial
market transactions.
Question 17 Inflow and outflow resulting from transactions is reported to the

________ .
(a) AMC Treasury
(b) Investor Service Center
(c) SEBI
Question 18 The unit capital of which type of schemes is altered when redemption takes place ?
(a) Close ended schemes
(b) Open ended schemes
(c) Both close and open ended schemes
(d) None of the above
Correct AMC Treasury

Answer 17
Correct Open ended schemes

Answer 18
Answer Redemption alters the unit capital of an open ended scheme.
Explanation In case of closed end funds, redemption of units happens only on the maturity date of
the scheme. (Redemption may be allowed during specified periods before maturity date
or at a cost as specified in the offer document)
Question 19 The formula for calculating NAV is _______ .
(a) (Market value of the portfolio - Expenses and liabilities) / (Number of

units outstanding)
(b) Face value of the portfolio - Expenses and liabilities) / (Number of units
outstanding)
(c) (Cost Price of the portfolio - Expenses and liabilities) / (Number of units
outstanding)
(d) (Unit value of the portfolio - Expenses and liabilities) / (Number of units
outstanding)
Question 20 When an investor does additional purchase transaction, the complete

details of the investor are not required if he provides the ________ .
(a) Aadhaar number
(b) PAN number
(c) KYC number
(d) Folio number
Correct (Market value of the portfolio - Expenses and liabilities) / (Number of units outstanding)
Answer 19
Answer NAV is calculated as:
Explanation (Market value of the portfolio - Expenses and liabilities) / (Number of units outstanding)
Correct Folio number

Answer 20
Answer For subsequent purchase transactions, if the folio number is quoted, several fields in an
Explanation application form need not be filled up again.
Question 21 The portion of authorised capital that has been issued to investors is called
_______ .
(a) Promoters Capital
(b) Paid Up capital
(c) Issued Capital
(d) Regularised Capital
Question 22 What happens when shares are Consolidated ?
(a) It brings down the 'par value' of the shares
(b) Consolidation is only allowed for Preference Shares
(c) It reduces the number of outstanding shares
(d) It reduces the dividend received on each share
Correct Issued Capital

Answer 21
The company may issue a portion of its authorised capital as and when it requires
Answer capital. The capital may be issued to the promoters, public or to specified investors.
Explanation
The portion of authorised capital that has been issued to investors is called issued capital.
Correct It reduces the number of outstanding shares

Answer 22
Answer The par value or face value of the shares can be changed subsequently, if the company
Explanation so desires. This is called a split or a consolidation of shares.
If 2 shares of Rs 5 face value each are clubbed into one share of Rs 10, it is called a
consolidation of shares. Therefore, 2 shares have now become 1 share, thus bringing
down the number of outstanding shares.
Question 23 The unit price of a Mutual Fund scheme ie. its NAV _______ .
(a) is always higher than its facevalue
(b) is usually lower than its facevalue
(c) can be higher or lower than its face value
(d) is always equal to its face value
Question 24 NAV is the basis for pricing only for redemption of Mutual Fund units as
buying is always done on face value - State True or False ?
(a) TRUE
(b) FALSE
Correct can be higher or lower than its face value

Answer 23
Answer The NAV of a fund depends on the market value of its portfolio which in turn depends on
Explanation the current market prices. The current market prices can be higher or lower than the
purchase price as these fluctuate on a daily basis.
Correct FALSE
Answer 24
Answer NAV is the basis for pricing for both purchase and redemption of units .
Explanation
Question 25 How the Asset Management Companies paid for their job of investment
management ?
(a) Fixed Salaries
(b) Equity Shares
(c) Fees
(d) Commissions on the profits earned
Question 26 Debt funds invest predominantly in _______ .
(a) Treasury bills
(b) Debt Securities
(c) Hybrid Securities
(d) Government Securities
Correct Answer 25 Fees
Answer AMCs specialise in investment management. They manage money for a

Explanation fee, usually determined as a percentage of the Assets Under Management
(AUM).
Correct Debt Securities

Answer 26
Answer Debt funds invest predominantly in debt securities. Debt securities have a fixed term and
Explanation pay a specific rate of interest.
Question 27 ________ settle the securities transactions of the mutual fund.
(a) AMC
(b) Trustees
(c) R&T agent
(d) Custodian
Question 28 _________ contain the details of features of a scheme and the expenses.
(a) Addendum
(b) Trust deed
(c) Statement of Additional Information
(d) Scheme Information Document
Correct Custodian
Answer 27
Answer Custodians settle the securities transactions of the mutual fund.
Explanation
They deliver and accept securities and funds, to complete transactions made in
the investment portfolio of the mutual fund.
Correct Scheme Information Document

Answer 28
Answer Information about the mutual fund scheme is provided in the Scheme Information
Explanation Document (SID). This includes:
- Summary of the scheme features
- Fees and expenses of the scheme.

Question 29 A plain vanilla bond is issued at face value and redeemed at ____ .
(a) par
(b) premium
(c) discount
(d) as per the market conditions
Question 30 To whom is the Statement of Accounts sent ?
(a) Only to the first holder
(b) To all the joint holder
(c) To the holders as selected in the application form
(d) Only to first and second holder
Correct par
Answer 29
Answer A plain vanilla bond will have a fixed term to maturity with coupon being paid at pre-
Explanation defined periods and the principal amount is repaid on maturity.
This means that interest is paid at regular intervals and the principal is returned on
maturity - ie. at par.
Correct
Answer 30 Only to the first holder
Answer In the Application Form, only the first holder address is required to be filled in and the
Explanation statement of account is sent to that address only.
Question 31 Transactions can be processed only the next day based on NAV of
________ .
(a) T+3 day
(b) T+2 day
(c) previous day
(d) next day
Question 32 The __________ determines the time it takes for the funds to move out of
the payer’s account into the account of the beneficiary.
(a) clearing process
(b) efficiency of the staff
(c) Bank
(d) R&T
Correct previous day

Answer 31
Answer The number in the denominator for calculating the NAV, can be provided by the R&T
Explanation agent, only after processing the purchase and sales transactions, for which they need the
applicable NAV.
Therefore transactions can be processed only the next day based on NAV of previous day.
After processing the transactions, the updated unit capital is communicated to the AMC.
Correct Answer 32 clearing process

Question 33 The source of funds has to be clearly shown while giving payment
instructions by an NRI - State True or False ?
(a) TRUE
(b) FALSE
Question 34 ________ is allowed by SEBI (Mutual Fund ) Regulations.
(a) Double taxation of dividend
(b) Listing of close ended mutual funds on stock exchanges
(c) Third party cheques for purchase of mutual fund units
Correct TRUE
Answer 33
Answer RBI regulates the foreign currency coming into and going out of India.
Explanation
NRI investors have to use payment instruments that clearly show the sources of their
funds. If the investment was made from an NRE (Non Resident External) account, they
will be able to repatriate the funds on redemption.
NRO (Non Resident Ordinary) accounts are rupee accounts. Investments made from
NRO accounts can be redeemed and repatriated only to the extent of USD one million
each financial year.
Correct Listing of close ended mutual funds on stock exchanges

Answer 34
Answer Third-party cheques are not a permitted mode of payment for mutual fund purchases
Explanation except is some special circumstances. Also dividend from equity mutual funds are exempt
form tax in India.
Close ended mutual funds have to compulsory list on Stock Exchanges.

Question 35 What is the Asset Under Management (AUM) of a fund ?
(a) Its the total amount of funds contributed by investors
(b) Its the current market value of the portfolio
(c) Its the amount collected during the NFO
(d) Its the minimum amount which needs to be maintained in a portfolio
Question 36 Why are Sector Funds risky ?
(a) They buy unlisted stocks
(b) They have a portfolio of stocks concentrated in a particular sector
(c) They have illiquid stocks
(d) They invest only in IPOs
Correct Its the current market value of the portfolio

Answer 35
Answer The market value of the portfolio is known as the assets under management (AUM) of
Explanation the fund.
The value of the portfolio changes every time there is a change in market price of
the securities that a mutual fund holds.
The portfolio is updated every day, to represent its current market value. This process is
called ‘marking to market’.
Correct They have a portfolio of stocks concentrated in a particular sector

Answer 36
Answer Sector Funds are funds that focus on companies in a particular theme such as
Explanation infrastructure or more
narrowly in a particular sector, such as banking. They appeal to investors who think that
the performance of stocks in the particular theme or sector would be better than that of
the broad market.
Examples: ICICI Pharma Fund, UTI Infrastructure Fund.
Question 37 Calculate the redemption price if the NAV is Rs. 75 and the exit load is
2%.
(a) Rs.73
(b) Rs.73.50
(c) Rs.76.50
(d) Rs.77
Question 38 Bonds that provide the investor with the right to seek redemption from
the issuer, prior to the maturity date, are called _________ bonds.
(a) callable
(b) puttable
(c) redeemable
(d) flexi
Correct Rs.73.50
Answer 37
Answer Redemption Price = NAV less the Exit load
Explanation
2% of 75 = 75 x 2 / 100 = 1.50
75 - 1.50 = 73.50
Correct puttable
Answer 38
Answer Bonds that provide the investor with the right to seek redemption from the issuer, prior
Explanation to the maturity date, are called puttable bonds.
A put option provides the investor the right to sell a low coupon-paying bond to the
issuer, and invest in higher coupon paying bonds, if interest rates move up.
Question 39 Who can be the Sponsors of Indian Mutual Funds ?
(a) Foreign entities
(b) Banks or financial institutions
(c) Indian companies
Question 40 The NAV of the fund is Rs 18 and there is no exit load. The redemption
price will be ____ .
(a) Rs 10
(b) Rs 16.80
(c) Rs 18
(d) Rs 19.80
Correct All of the above

Answer 39
Answer Sponsors can be Indian companies, banks or financial institutions, foreign entities or a
Explanation joint venture between the two.
Correct Rs 18
Answer 40
Answer The NAV is the redemption price if there is no exit load.
Explanation
Question 41 How do the retail investors generally make their SIP investments ?
(a) By giving monthly cheques
(b) By NEFT
(c) By RTGS
(d) By ECS
Question 42 To change the bank details in a mutual fund folio, which of the following
are required ?
(a) Bank attestation
(b) Attestation by the AMC
(c) Account number, bank name and branch details
(d) Account statement copy
Correct By ECS
Answer 41
Answer Electronic Clearing System (ECS) is a batch process, where funds are moved from or to
Explanation several accounts, simultaneously, on given dates.
Retail investors use ECS for their Systematic Investment Plans (SIPs).
Correct Account number, bank name and branch details

Answer 42
Answer Investors should provide the complete details of the bank account for the 'Change of Bank'
Explanation request to be valid. This includes bank name, branch name, MICR (where applicable),
IFSC code (where applicable) account number and type of account. The investor should
also submit a cancelled blank cheque to enable verification of the bank details.
Question 43 Where should the machine log of the time stamping machine be
maintained ?
(a) At the Head office
(b) At the Branch Level
(c) At all back offices
(d) Only at the AMC office
Question 44 The unit capital of ____________ is altered by redemptions.
(a) All schemes
(b) Open ended schemes
(c) Close ended schemes
Correct Answer 43 At the Branch Level
Answer A machine log should be maintained at a branch level. The log should be
Explanation used to record instances of the machine having been opened. This includes
replacement of cartridge and break down.
Correct Open ended schemes

Answer 44
Answer Investments are made in rupee terms by the investor. But the fund will always record
Explanation this investment in terms of number of units. Number of units = Invested amount/price per
unit.
The unit capital of an open-ended fund is not fixed, but varies according to the purchase
and redemption transactions of investors
Question 45 Where are the unclaimed dividends transferred by a company if they

remain unclaimed for a specific period ?
(a) They are sent to RBI
(b) They are sent to SEBI
(c) They are sent to NSDL or CDSL
(d) They are sent to Investor Protection Fund
Question 46 What does the NAV of a fund represent ?
(a) future value
(b) redemption value
(c) face value
(d) current value
Correct Answer 45 They are sent to Investor Protection Fund

Answer Unpaid dividends, matured debentures and deposits, application and
Explanation call money due for refund etc. form part of the Investor Education and
Protection Fund (IEPF) provided such money has remained unpaid and
unclaimed for a period of seven years from the date they were due for
payment.
Correct Answer 46 current value

Answer The current market value per unit is called the net asset value (NAV).
Explanation NAV can move up or down, depending upon whether the value of the
portfolio has moved up or down.
Question 47 The SEBI regulation specify the minimum _______ requirements for an
issuer
(a) net worth
(b) foreign holding
(c) cash flow
(d) turn over
Question 48 Current yield is a measure of _______ .
(a) duration of a bond
(b) credit worthiness of a bond
(c) return of a bond
(d) coupon of a bond
Correct Answer 47 net worth
Answer The SEBI regulation specify the minimum net worth requirements for an
Explanation issuer, the minimum public holding to be maintained and the lock-in on
the holdings of the promoters.
Correct coupon of a bond

Answer 48
Answer Current yield compares the coupon of a bond with its market price.
Explanation
Question 49 _______ means the pool of money given by investors, where as _____
means the investment products in which investments have been made
(a) AMC , Mutual Fund
(b) Contribution , Portfolio
(c) Trust , AMC
(d) Mutual Fund , Portfolio
Question 50 Investments in Mutual Funds are flexible in terms of _______ of

investment
(a) place
(b) cost
(c) price
(d) period
Correct Mutual Fund , Portfolio

Answer 49
Answer A mutual fund is an investment option, where investors contribute small amounts of
Explanation money.
These contributions are pooled together to make it a large sum. This sum is then invested
in a portfolio of various securities.
Correct period
Answer 50
Answer There is complete flexibility to the client in terms of the period for which he wishes to
Explanation invest in a mutual fund. It could range from a day to very long term.
Question 51 When a NRI makes an application by a cheque, the cheque has to drawn
on ____ account.
(a) Foreign Currency Non Resident (FCNR)
(b) Non Resident External (NRE)
(c) Non Resident Ordinary (NRO)
Question 52 Redemption cheques are drawn payable to _______ in a folio.
(a) all the holders
(b) the first holder
(c) the second holder
(d) all the holders in equal proportion of the redeemed amount
Correct All of the above

Answer 51
Answer In case of NRI applications with cheque, cheque is drawn on NRE or NRO or
Explanation FCNR account.
Correct the first holder

Answer 52
Answer Redemption cheques are drawn payable only to the first holder in a folio.
Explanation
Mutual funds cannot issue third party payments.
Question 53 In case of Systematic Transfer Plan (STP) and Systematic Withdrawal

Plan (SWP) , the applicable NAV depends on _____ .
(a) the rules of the respective mutual fund
(b) the frequency
(c) the transaction date
(d) the amount transferred or withdrawn
Question 54 FCCB allow companies to raise debt at lower rates abroad - State True or False ?
(a) TRUE
(b) FALSE
Correct the transaction date

Answer 53
Answer Unit holders can redeem or purchase units at the Applicable NAV on the respective SWP/
Explanation STP dates.
Correct Answer 54 TRUE

Answer FCCBs are bonds issued by Indian companies and subscribed to by a non-
Explanation resident in foreign currency. FCCB allow companies to raise debt at
lower rates abroad.
Question 55 Funds that have a combination of asset classes such as debt and equity in
their portfolio are called _______ .
(a) ELSS funds
(b) Hybrid funds
(c) Sectoral funds
(d) Thematic funds
Question 56 A document that has to be time-stamped is passed through a slot in the

time stamping machine - State True or False ?
(a) TRUE
(b) FALSE
Correct Hybrid funds

Answer 55
Correct TRUE
Answer 56
Answer A document that has to be time-stamped is passed through a slot in the machine. The
Explanation location code, machine identifier, date, time (hh:mm) and running serial number are
generated in every time stamp.
Question 57 What type of tax will be applicable if the investor sells his equity
investments within one year of purchase ?
(a) Long term Capital Gain Tax
(b) Short Term Capital Gain Tax
(c) Medium Term Capital Gain Tax
Question 58 When are the changes to unit capital notified to the fund ?
(a) On the Transaction Day
(b) On T+1 day
(c) On T + 2 day
(d) On T+ 3 day
Correct Short Term Capital Gain Tax

Answer 57
Answer Capital gains are taxed as short term capital gains (STCG) if the investor has held the
Explanation investment for
a period less than 1 year.
If the holding period is for more than 1 year, the gain is taxed as long term capital gain
(LTCG).
Correct On T+1 day

Answer 58
Answer Number of units outstanding can be provided by the R&T agent, only after processing
Explanation the purchase and sales transactions, for which they need the applicable NAV.
Therefore transactions can be processed only the next day based on NAV of previous day.
After
processing the transactions, the updated unit capital is communicated to the AMC.
Question 59 What is predefined in a mutual fund scheme ?
(a) NAV
(b) AUM
(c) Investment Objective
(d) Dividend
Question 60 Hybrid funds invest in ______.
(a) only equity
(b) only debt
(c) both equity and debt
Correct Investment Objective

Answer 59
Answer Fund managers invest the pool of money into securities such as equity and debt, according
Explanation to the stated investment objective of the fund.
Correct both equity and debt

Answer 60
Answer Funds that have a combination of asset classes such as debt and equity in their portfolio
Explanation are called hybrid funds.
The objective is to bring to the investor the benefit of strategically investing in both
markets, in a
single product.
Question 61 Bonds , Commercial Papers and Debentures are a form of _________ .
(a) Hybrid Capital
(b) Long Term Capital
(c) Debt Capital
(d) Equity Capital
Question 62 Which of the below mentioned options is an example of Corporate Debt

security ?
(a) IPO
(b) Non Convertible Debentures
(c) Preference Shares
(d) Private placements
Correct Debt Capital

Answer 61
Answer Funds brought in as loan is called debt capital.
Explanation
Debt is raised by companies either by issuing securities such as debentures, bonds
and commercial paper to the lenders or by taking a loan from a bank or financial
institution.
Correct Private placements

Answer 62
Question 63 When a SWITCH transaction takes place, the scheme into which the
funds are switched is known as ________ .
(a) Target scheme
(b) Source scheme
(c) Investment scheme
(d) Recipient scheme
Question 64 A Commercial paper is ______ debt instrument where as a dated

Government security is _______ bond
(a) Long term, Short term
(b) Short term, Long term
(c) Unrated, Rated
(d) Taxable, Non taxable
Correct Target scheme

Answer 63
Answer A switch is a redemption and purchase transaction rolled into one. A redeeming scheme
Explanation is called source scheme from which money is switched out.
The purchasing scheme is called TARGET scheme, into which the money is switched in.
Correct Short term, Long term

Answer 64
Answer Dated Government securities are long term securities or bonds of the government that
Explanation carries a fixed or floating coupon (interest rate)
Commercial Papers are short-term papers issued by companies to meet their working
capital requirements.
Question 65 How can be ETFs bought and sold ?
(a) Through Mutual Fund agents
(b) Directly from AMCs
(c) Through Stock Exchanges
(d) ETFs cannot be bought and sold
Correct Through Stock Exchanges

Answer 65
Answer Exchange Traded Funds (ETF) are also mutual fund products that may be linked to
Explanation an underlying index or commodity such as gold, but listed and traded on a stock
exchange.
An ETF is traded on stock exchanges and the NAV and price change on real time basis in
accordance with market movements.
Practice Question Banks also available for :
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NISM Series VI: NISM Series VI - Depository Operations Certification Exam
NISM Series VII: Securities Operations and Risk Management
NISM Series VII: Equity Derivatives Certification Exam
NISM Series III A: Securities Intermediaries Compliance Certification Exam
NISM Series X A : Investment Adviser (Level 1) Certification Exam
NISM Series X B: Investment Adviser (Level 2) Certification Exam
NISM Series X V: Research Analyst Certification Exam
NCFM
NCFM Financial Markets: A Beginners Module

NCFM Capital Market (Dealers) Module
NSE FIMMDA : Debt Market (Basic) Module
NCFM Derivative Market (Dealers) Module
BSE
Certificate on Security Market (BCSM)


Nism Ii B - Registrar - Last Day Test 2

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NISM SERIES II B - REGISTRARS TO AN ISSUE & SHARE

TRANSFER AGENT (MUTUAL FUNDS) EXAM

LAST DAY REVISION TEST 2.

(a) Short term Capital Gains Tax

(b) Medium term Capital Gains Tax

(c) Long term Capital Gains Tax

(d) Securities Transaction Tax

Correct Answer 1 FALSE

Correct Answer 2 Long term Capital Gains Tax

(a) issuer , market forces

(b) SEBI , Stock Markets

(c) Board of Directors of the issuer , BSE

(d) issuer, stock exchange

Question 4 What does the NAV of a fund reflect ?

(a) It reflects the current value of its market operations

(b) It reflects the current value of its unit capital

(c) It reflects the current value of its assets

(d) It reflects the current value of its investment portfolio

Correct issuer , market forces

Correct It reflects the current value of its investment portfolio

Question 6 In case of NRI applications with cheque, cheque is drawn on ______

(d) All of the above

Answer Investors above 18 years of age are classified as resident individuals. An

Correct Answer 6 All of the above

(b) Fund Manager

(c) type of investors

(d) investment portfolio

Correct investment portfolio

Question 9 What is the meaning of the 'coupon' of a debenture ?

(a) It is the rate of interest applied to the face value of debenture

(b) It is the discount on the debenture

(c) It is the price in the secondary market

(d) It is the amount of interest in rupees

Question 10 Preference Share holders have a preference in the payment of dividend

Correct It is the rate of interest applied to the face value of debenture

Question 11 Who provides collection services to Mutual Funds ?

(a) R&T Agents

(b) Investor Service Centers (ISC)

(a) Only sell the units

(b) First buy and than sell the units

(c) Only buy the units

(d) Both buy and sell units

(a) By letters to all investors

(d) No need to inform the change in content

Question 14 What are High-yield Debt Funds also known as ?

(a) Risky Funds

(b) Floating Rate Funds

(c) Junk bond Funds

(d) Income Funds

Correct Junk bond Funds

(a) Debt Funds

(b) Balanced Funds

(c) ELSS Funds

(d) All Equity Funds

Question 16 Who issues the Permanent Account Number (PAN) ?

(b) Reserve Bank of India

(d) Income Tax Office