FMS PGDM Batch 2023-25 T2 Division D

A close ended mutual fund has a fixed

• NAV

• Fund size

• Rate of return

• Number of distributors

The payoffs for financial derivatives are linked to

• securities that will be issued in the future

• the volatility of interest rates

• previously issued securities

• government regulations specifying allowable rates of return

Which of the following is not a financial derivative?

• Stock

• Futures

• Options

• Forward contracts

The number of futures contracts outstanding is called

• liquidity

• volume

• float

• open interest

The maximum load that refund can charge is determined by the

• AMC

• SEBI

• AMFI

• Distribution agents based on demand for the fund

A mutual fund is owned by

• Government of India

• SEBI

• All its investors

• AMFI

The load charged to an investor in a mutual fund is

• Entry fee

• Cost of the paper on which the unit certificates are printed

• The fee the agent charges to the investor

• The expenses incurred by fund managers for marketing a mutual fund scheme

A gilt fund is a special type of fund that invests

• in very high quality equity only

• In instruments issued by companies with a soundtrack record

• in short term securities

• in government securities only

The price of a futures contract at the expiration date of the contract

• equals the price of the underlying asset

• equals the price of the counterparty

• equals the hedge position

• equals the value of the hedged asset

NAV of a mutual fund

• Is always constant

• keeps going up at a steady rate

• fluctuates with market price movements

• cannot go down at all