You must score at least 80% to complete this chapter.

1. The most important objective of Association of Mutual Fund of India (AMFI) is to regulate Mutual Funds industry. True or False?

2. Mutual Funds only need to follow the regulations laid down by SEBI. True or False?

3. What does an SRO do?

4. Who are the members of AMFI?

5. AMFI's Code of Ethics are a more updated replacement of SEBI's Code of Conduct. True or False?

6. What does SRO stand for?

7. Which of the following is not an objective of AMFI?

8. AMFI's Code of Ethics are a summary of SEBI's Code of Conduct. True or False?

9. What is the AMFI's Code of Conduct for intermediaries called?

10. If a mutual fund distributor has offices in at least _________ locations, he will qualify for due diligence review process.

11. Which type of mutual fund scheme would have an investment objective like 'To generate capital appreciation from a portfolio of predominantly equity related securities'.

12. Which body regulates mutual funds in India?

13. Who is primarily responsible to create awareness about mutual funds?

14. Who has issued guidelines to prevent circulation of unauthenticated news by intermediaries?

15. Which type of mutual fund scheme would have an investment objective like 'To generate income by investing predominantly in a wide range of debt and money market securities'

16. Can Mutual Funds give loans?

17. How much can a scheme invest in listed equity securities of group company of sponsor?

18. Without taking an approval of trustees, how much of its net assets can a scheme park in short term deposits of a scheduled commercial bank?

19. If a mutual fund distributor receives commission over ____________ p.a. across industry, he will qualify for due diligence review process.

20. What is the maximum duration for which NFO (except ELSS) can remain open?

21. An investor can pledge units of Mutual Fund as security against loan. True or False?

22. Rules, regulations, guidelines, etc. of which organization are applicable on mutual funds?

23. Where can appeal against SEBI be filed?

24. What are the standards laid down by AMFI to promote investor's interest called?

25. Where can an intermediary file an appeal against cancellation of his registration?

26. What are the two categories under which customer client relationship and transactions be categorized?

27. Unit certificates are non-transferable. True or False?

28. At least _________ of ELSS funds should be invested in equity and equity linked securities.

29. Which type of mutual fund scheme would have an investment objective like 'To achieve growth by investing in equity and equity related investments, balanced with income generation by investing in debt and money market instruments'.

30. What can lead to cancellation of intermediary's registration?

31. In NFO, once the units are allotted, open ended schemes must re-open for sale/ repurchase within ___________ business days from the date of allotment.

32. If there is a change in fundamental attributes of a scheme the existing investors must be informed and given an opportunity to exit the scheme. The period during which they can exit without exit load is -

33. Which of the following is an SRO ?

34. Bank sponsored mutual funds need to follow the regulations of RBI also.

35. “ Mutual fund investments are subject to market risks, read the offer document carefully before investing ” this line shoud be displayed on posters and hordings with at least ---------------
                  alphabet height .

36. Who regulates money market and foreign exchange market?

37. Under which regulations of SEBI is mutual fund covered?

38. Is AMFI an SRO?

39. What is the responsibility of the intermediary if his employees have access to Blogs/ Chat forums/ Messenger sites?

40. Can a distributor sell mutual fund product of distributor’s group/ associate/ affiliate?

41. Within how many days should an open-ended scheme reopen for sale and repurchase?

42. How much can a mutual fund invest in one sector (except financial service sectors)?

43. How much can a close-ended scheme invest in unlisted equity shares and equity related instruments?

44. An intermediary has laid down internal code of conduct and appointed a Compliance Officer. An employee of his sends a market related rumour to the clients of the intermediary. Who is responsible?

45. A scheme (except ELSS) has to allot units or refund money within ________ business days of closure of NFO.

46. If there is a delay in payment of refund of the amount paid by an investor in NFO, then interest @ __________ p.a. for the delay period needs to be paid.

47. A mutual fund must send scheme-wise annual report or its abridged summary within ________ of the end of a financial year.

48. Investment in unrated Debt and money market instruments other than the Government securities, treasury Bills and Derivative products shall be limited to 5% of the net assets of the scheme with the prior approval of Trustees and the AMC.

49. A money market or debt security will be classified as ‘below investment grade’ if the long term credit rating of the security falls to ‘BBB-‘ (pronounced as triple B minus).

50. The investment of mutual fund schemes in the structured debt instruments shall not exceed 10% of the debt portfolio of the scheme.

51. All open ended debt schemes (except Overnight , Liquid Fund & gilt) shall hold at least 10% of their net assets in liquid assets.

52. Liquid Funds shall hold at least 20%of its net assets in Liquid assets.

53. All open ended debt schemes (except overnight scheme) will be required to conduct stress testing in lines with the guidelines stipulated by the AMC.