Quiz - 24th Jan 2024

What is Net Asset Value (NAV) in the context of mutual funds?

• Number of shares held by an investor

• Total value of assets minus liabilities

• Price of one mutual fund unit

• Annual return on investment

What type of risk is associated with changes in interest rates affecting bond prices in a mutual fund?

• Market Risk

• Credit Risk

• Interest Rate Risk

• Inflation Risk

What is the sales charge or commission paid by investors when buying or selling mutual fund shares?

• Expense Ratio

• Front-end load

• Back-end load

• Management Fee

Which type of mutual fund aims to replicate the performance of a specific market index?

• Equity Fund

• Bond Fund

• Index Fund

• Sector Fund

What is the primary purpose of a dividend option in a mutual fund?

• Capital appreciation

• Regular income distribution

• Tax reduction

• Risk reduction

What is a depository in the financial context?

• A place to store goods

• A financial institution that holds securities

• A government office for tax collection

• A place to exchange foreign currencies

Which of the following is a key function of a depository?

• Issuing credit cards

• Lending money to businesses

• Facilitating the trading of securities

• Providing insurance services

What is the primary purpose of dematerialization in the context of depository services?

• Converting physical securities into electronic form

• Creating physical certificates for securities

• Facilitating international trade

• Providing insurance for securities

Maximum strength of Members on the SEBI Board is

• 9

• 7

• 10

• 6

As per section 15J of SEBI Act, 1992, which of the following factors is not to be considered by the Adjudication Officer while imposing penalty?

• Amount of disproportionate gain or unfair advantage, made as a result of the default

• Amount of loss caused to investors as a result of the default

• Repetitive nature of default

• Number of investors who have incurred loss as a result of the violation