Você está na página 1de 11

MUTUAL FUNDS DISTRIBUTORS

CERTIFICATION
Mock Questions

Important Note:
This mock examination paper is the property of the Institute of Financial Markets of
Pakistan (IFMP). It is strictly disallowed to make any copy of this paper without prior
written approval of the IFMP, and only for IFMP candidates, failing which appropriate
disciplinary action shall be taken by the IFMP.

ELEMENT 1
1.
When investors wish to withdraw their deposits from bank all at once, such a
situation is known as
a.
b.
c.
d.

Short-term investments.
A client default.
A bank default.
A bank Run.

2.
Mutual Funds are structured in two ways, the more common structure is an
open end fund under which
a.
A fixed number of redeemable shares are sold at an initial offering price
b.
Units are purchased and sold with annual coupon payments
c.
Units can be redeemed at any time at a price that is tied to net asset value of
the fund
d.
Units are purchased and sold at premium or discount to NAV depending on
market sentiment.
3.

Speculation, in the narrow sense of financial speculation, involves


a.
Short-selling and covering of investment instruments
b.
Buying, holding, selling and short-selling of investment instruments for
immediate gains.
c.
Buying investment instruments for use or for income via interest or long
term capital gains
d.
Anticipating that the value of investment instrument will increase in future.

4.

A mutual fund sales agent is a company or person who


a.
Looks after the investments of clients and provide them with annual returns.
b.
Sells the large chunks of investments to retail investors only.
c.
Takes the responsibility of talking to brokers and financial planners, and
convince them about buying mutual funds.

d.
Helps a retail customer to review the mutual funds that meet their
investment objectives, and also informs investor risks.
ELEMENT 2
5.
Mutual Funds usually have low minimum initial investment requirements.
This provides
a.
The fund manager an opportunity to manage funds at low costs.
b.
The investors, an access to the market and a chance to add to holdings in
small increments.
c.
Lower percentage of return on investments.
d.
Lower risk to Asset Management Company.
6.

In mutual funds, unit holders can benefit from


a.
b.
c.
d.

Portfolio diversification by buying positions in a wide variety of securities.


Specialization techniques of speculation in selected stocks.
High investment risk as compared to markets.
Low investment costs as compared to commodities.

7.
All the moveable and immoveable assets of the mutual funds are vested with
the Trustee for the benefit of
a.
The Unitholders only, which means that the beneficial ownership of the
assets of the Fund vests with the Unitholders.
b.
The Asset Management Company only, which means that the beneficial
ownership of the assets of the Fund vests with the AMC.
c.
Both the Unitholders and the AMC equally divided amongst the two.
d.
The employees and senior executives of the AMC.
8.
Asset Management Companies (AMC) charge fund management fee. The AMC,
for first five years,
a.

Can Charge as much fee as its directors decide

b.
Can charge the fee which can go, up at times, to 10% of the funds under
Management
c.
Can charge the fee that is not under a policy but as decided by the executives
of the AMC
d.
Can charge a maximum of 3%
ELEMENT 3
9.
Offer and redemption prices of mutual fund units are calculated, in a manner
that the total net assets are
a.
Divided by the number of units outstanding and such prices may be adjusted
by fees and charges levied.
b.
Divided by the number of units outstanding and such prices shall not be
adjusted by fees and charges.
c.
Divided by the number of units outstanding and such prices as deemed
appropriate by the fund manager.
d.
Divided by the number of units outstanding only adjusted for taxes.
10.
the

The method of calculating fees and charges of the mutual fund are disclosed in

a.
b.
c.
d.

Trust Deed by the custodian


Account Opening Form.
Offering Document.
None of the above.

11.
The Government makes laws and rules, while regulations and
directives/guidelines are issued by the SECP.
a.
b.
c.
d.
12.

Only Government laws are binding and need to be observed.


Directives are only for guidance and not important to follow.
Guidelines are recommendatory only.
Every law, directive, guideline is to be strictly observed.

Corporate Term Finance Certificates (TFCs) are issued by the corporations

a.
b.
c.
d.

To raise short term debt of less than one year duration.


To increase the paid up capital of the company.
And these TFCs are same as the commercial paper.
None of the above.
ELEMENT 4

13.
The Investment Objectives of a mutual fund, its policies, restrictions and
possible risks involved in the investments are provided in the
a.
b.
c.
d.

Prospectus or Offering Document.


Trust Deed.
Account Opening Form.
None of the above.

14.
The Registrar directly sends to each unit holder, a non-transferable statement
of account
a.
Each time there is a transaction in the account only for subscription or
redemption of units.
b.
Each time there is a transaction in the account, i.e. units are subscribed,
redeemed, transferred, bonus issue or reinvestment of dividend, etc.
c.
On unit holder's request only.
d.
Quarterly or annually only according to policy of the Fund.
15.
A Fund has average weekly net assets of Rs.324 million and has annual
expenses of Rs.3.24 million; the expense ratio of the fund is _______
a.
b.
c.
d.
16.

1%
10%
Can't say
Insufficient information

The reinvestment of dividends in an open-end mutual fund is undertaken

a.
Without deducting any tax, are automatically reinvested in additional units
under the instructions of investor.
b.
Without deducting any tax, are automatically reinvested in additional units
without the instructions of investor.
c.
After deducting applicable tax, are automatically reinvested in additional
units with the instructions of investor.
d.
After deducting applicable tax, are automatically reinvested in additional
units without the instructions of investor.
ELEMENT 5
17.

Dividend in the form of bonus units is;


a.
b.
c.
d.

not exempted from withholding tax.


exempted from withholding tax.
not exempted from withholding tax, if en-cashed immediately after receipt.
not exempted from withholding tax, if re-invested immediately after receipt.

18.
After July 1, 2010, where holding period of a security is more than one year,
the applicable capital gain tax rate is
a.
b.
c.
d.

0%.
7.5%.
8%.
10%.

19.
The closure of the Register by the Asset Management Company must not
exceed;
a.
Six days at a time and 45 days in the entire calendar year. During the closure
periods, purchase redemption and transfer applications are not entertained.
b.
Ten days at a time and 30 days in the entire calendar year. During the closure
periods, purchase redemption and transfer applications are not entertained.
c.
Six days at a time and 45 days in the entire calendar year. During the closure
periods, purchase redemption and transfer applications can be entertained.

d.
Ten days at a time and 30 days in the entire calendar year. During the closure
periods, purchase redemption and transfer applications can be entertained.
20.

An "AM 5" rating means that the Asset Manager


a.
Meets or exceeds the overall investment management industry best practices
and highest benchmarks in all criteria under review.
b.
Meets very high investment management industry standards and
benchmarks with noted strengths in several of the rating factors.
c.
Demonstrates an adequate organization that meets investment management
industry standards and benchmarks.
d.
Does not meet the minimum investment management industry standards
and benchmarks.
ELEMENT 6

21.

The pension fund is usually a common asset pool meant to generate


a.
b.
c.
d.

22.

Aggressive growth over the long term.


Stable growth over the long term.
Highest return with relatively higher risk over the long term.
Low risk income over the short to medium term.

In the Voluntary Pension System, the tax rebate is on


a.
Pension withdrawal while tax is paid on the contributions and investment
income.
b.
Contributions, investment income and gains accumulate taxfree, while tax is
paid at the stage pension is drawn.
c.
Contributions only.
d.
None of the above.
ELEMENT 7

23.
The term "Islamic Investment Fund" or "Islamic Mutual Funds" usually means
a joint pool wherein the investors contribute their surplus money for the purpose of
its investment to earn Halal profits

a.
Carrying a variable pro-rated profit that is actually earned by the Fund.
b.
Carrying a variable profit earned by the Fund and distributed higher in
percentage terms to larger investors.
c.
Carrying a fixed pro-rated return irrespective of the fact whether profit is
earned by the Fund.
d.
With capital protected investment but variable profits distributed in prorated basis.
24.
An Islamic finance term describing a risky or hazardous sale, where details
concerning the sale item are unknown or uncertain and is forbidden, is called
a.
b.
c.
d.

Maisir
Haram
Gharar
Riba
ELEMENT 8

25.
Usually, in an open-end fund, the offer price for investments and the
repurchase price for redemptions are derived from Net Asset Value of that day. This
is more important for;
a.
An equity fund than an income fund because of more chances of volatility in
the former as opposed to the latter.
b.
An income fund than an equity fund because of more chances of volatility in
the former as opposed to the latter.
c.
An equity fund than an income fund because of lesser chances of volatility in
the former as opposed to the latter.
d.
An income fund than an equity fund because of no chances of volatility in the
former as opposed to the latter.
26.
A common mistake made by a Mutual Fund Sales Agent may usually occur by
not rightly assessing the future needs of the customer and/ or by not properly
providing investment advice to achieve desired investment target of the investor.
With respect to an individual investor, if there is a risk that an investor may not be

able to achieve his investment targets, despite his capacities, such a situation is
typical example of;
a.
b.
c.
d.

Overselling
Misselling
Speculative selling
Risk selling

27.
A person who is a director, chief executive, managing agent, chief accountant,
secretary or auditor of a listed company or the beneficial owner holding directly or
indirectly not less than 10% of the shares of a listed company may be treated as the
a.
b.
c.
d.

Front runner.
Insider.
Whistle Blower.
None of the above.

28.
Insider 'Material information' is the information about certain aspects of a
company;
a.
That has already been made public and will have least or minimal impact on
the company's share price.
b.
That has not yet been made public but that will have at least some impact on
the company's share price once this information is released to public.
c.
That has been made public and will have a large impact on the company's
share price.
d.
That has not yet been made public but that will have absolutely no impact on
the company's share price once this information is released to public.

ELEMENT 9
29.

The concept of time value of money suggests that:


a.
b.

The money available at present is less than the same amount in future.
Money available at present is more than the same amount in future

c.
The money available at present is equal to the same amount any time in
future.
d.
None of the above
30.
The difference in value between the total export and import of goods of a
country during a specific period of time is called
A.
B.
C.
D.
31.

Balance of payments
Trade deficit in commodity transactions
Balance of trade
Export surplus

With an increase in discount rate;


A.
B.
C.
D.

Present value of cash inflows will also increase.


Present value of cash inflows will decrease.
This will cause no effect on the present value of the cash flows.
The present value of cash flows will marginally increase.

32.
The income of an organization received from interest, dividends or royalties is
considered as part of;
A.
B.
C.
D.

Net income
Operating income
Retained earnings
Capital gains

Institute of Financial Markets of Pakistan (IFMP)


Mutual Funds Distributors Certification
(Confidential)
Answer Key

Question No.

Answer Option

Question No.

Answer Option

17

18

19

20

21

22

23

24

25

10

26

11

27

12

28

13

29

14

30

15

31

16

32

Você também pode gostar