Mutual Funds MCQ
Introduction to mutual fund
Multiple choice questions and answers
1. Mutual Fund was first introduced in the year:
- 1822
- 1868
- 1964
- 1992
Answer :- 1822
2. Which country introduces mutual funds for the first time?
- UK
- USA
- USSR
- Belgium
Answer :- Belgium
3. Who introduces mutual funds in India?
- RBI
- UTI
- SEBI
- MOF
Answer :- UTI
4. Mutual funds introduced in India in the Year:
- 1822
- 1868
- 1964
- 1992
Answer :- 1964
Hint: In India, first mutual fund was started in 1964 by Unit Trust of India (UTI).
5. UTI was established in the year:
- 1822
- 1868
- 1963
- 1992
Answer :- 1963
Hint: UTI was established in the year 1963 under a special act of parliament. Its main aim is to promote mutual funds in India. It was formatted by Reserve Bank of India (RBI).
6. UTI was established by which bank?
- RBI
- SBI
- PNB
- UCO Bank
Answer :- RBI
7. First mutual fund scheme introduced by UTI was:
- UTI Index Fund
- UTI Offshore Fund
- US-64
- UTI Midcap Fund
Answer :- US-64
8. First mutual fund established by SBI in the year:
- 1822
- 1963
- 1987
- 1992
Answer :- 1987
9. In which year private sectors started mutual funds schemes in India?
- 1964
- 1988
- 1993
- 2016
Answer :- 1993
10. Which one of the following is an advantage of mutual fund?
- Diversification
- Reduction of risk
- Liquidity
- All of the above
Answer :- All of the above
11. In which year commercial banks are permitted to start Mutual fund schemes?
- 1964
- 1968
- 1987
- 2016
Answer :- 1987
12. LIC mutual fund was set up in the year:
- 1964
- 1988
- 1989
- 2016
Answer :- 1989
13. The promoter of a mutual fund scheme is called:
- AMC
- Sponsor
- Trustee
- Custodian
Answer :- Sponsor
14. Mutual funds in India are formed as:
- Firm
- Company
- Trusts
- Co-operative society
Answer :- Trusts
15. Trustee of mutual funds is appointed by:
- AMC
- Sponsor
- Trustee
- Custodian.
Answer :- Sponsor
16. The minimum number of members in a board of trustee in:
- 3 (Three)
- 4 (four)
- 5 (Five)
- 6 (Six)
Answer :- 4 (four)
17. Which one of the following is not qualified for appointment as a trustee?
- Officers and employees of an AMC
- Independent trustee of other mutual fund
- Any person who has been convicted of any economic offence or violation of any securities laws
- All of the above
Answer :- All of the above
18. At least ______ of the trustees of a mutual fund scheme shall be independent.
- 50%
- 2/3
- 90%
- 75%
Answer :- 50%
19. Which one of the following is not a constituent of a mutual fund?
- The sponsoring Company known as sponsor
- The Trustees
- The Asset Management Company (AMC)
- RBI
Answer :- RBI
20. Sponsor must contribute at least _____ of the net worth of AMC.
- 40%
- 50%
- 66.67%
- 90%
Answer :- 50%
21. Which of the following is true about AMC?
- The sponsor or the trustee shall appoint an AMC.
- Mutual funds are managed by AMC.
- AMCs are established as a separate body corporate.
- All of the above
Answer :- All of the above
22. A mutual fund custodian can be either:
- Bank
- Trust
- Both of the above
- None of the above
Answer :- Both of the above
23. The main functions of a mutual fund custodian are:
- Maintain accounts of securities of a client.
- Collects interest and dividends or rights in respect of securities
- Helps in transfer of securities in the name of the trust.
- All of the above
Answer :- All of the above
24. A mutual fund custodian is appointed by:
- The sponsoring Company known as sponsor
- The Trustees
- The Asset Management Company (AMC)
- RBI
Answer :- The Trustees
25. The person who holds the property of a mutual fund in trust for the benefit of mutual funds unit holder is known as:
- The sponsoring Company known as sponsor
- The Trustees
- The Asset Management Company (AMC)
- Custodian
Answer :- The Trustees
26. The regulatory body of mutual funds in India is:
- RBI
- SEBI
- IRDA
- Government
Answer :- SEBIÂ