Element 3 and others
Investment Knowledge Quiz
Test your understanding of investment concepts and financial terminologies with our comprehensive quiz. Ideal for students, professionals, and anyone interested in the world of finance!
Challenge yourself with questions on:
- Collective Investment Schemes
- Market Risks and Financial Regulations
- Mutual Funds and ETFs
- Investment Strategies
"Offering Document" means a published document containing information on a Collective Investment Scheme to invite the AMC for purchase of certificates or units in that scheme
True
False
Inflation is the increase in the level of prices and such as, increases the real value of money;
True
False
Index fund always tries to outperform the respective index it follows:
True
False
Mutual funds invest in a broad rand of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security.
True
False
The matching of investments and redemptions is achieved by the fund managers by spreading their investments across several securities of different maturities and also some very liquid equity stocks so that they are not caught off- guard when redemption requests are received.
True
False
It is extremely necessary to bring receipt of complaints to the attention of MUFAP. This will enable them to identify trading violations and weak areas in their compliance which could affect investor confidence.
True
False
When money from clients deposited with the firm is held in a pooled account, the firm should be able to demonstrate that an amount owed to a specific client that is held within the pool can be reconciled with the records showing that individual's client balance and is, therefore, identifiable.
True
False
An Amicable Settlement refers to :
A. The SECP settles the loss for the investor on behalf of the AMC
B. The investor's complaint was ruled in- favour of him/her and the settlement is done with the AMC
C. Going to Civil Courts
D. None of the above
Every Investment Company shall place and maintain all assets owned or held by the company with a custodian appointed by it with the prior approval in writing of the_________
Investor
Commission
Trustee
None of the above
The process and transactions thereof for investing in an ETF are not the same as in shares and short selling is not possible in ETFs, as per Exchange rules.
True
False
Many retail investors prefer to invest in bonds because of the certainty of income in the form of interest payments and principal payment at maturity
True
False
The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is also done in the primary market
True
False
The custodian shall, if any release of any asset from custody is contrary to the provisions of the Rules of NBFC regulations, may not report the matter to the commission for with.
True
False
In shariah compliant scheme, if some income from interest-bearing accounts is included in the income of the company, the proportion of such income in the dividend paid to the shareholder must be given in charity, and must not retained by him.
True
False
Money market funds are considered appropriate for investors seeking stability of principal, total liquidity, and earnings that are as high, or higher, than those available through bank certificates of deposit
True
False
Investors cannot tailor their mutual fund investment products according to their plans of future individual and family needs, and cannot make adjustments as their life cycle need change.
True
False
An Asset Management Company shall be entitled to an accrued remuneration equal to an amount not exceeding 3% of average annual assets in case of equity, balanced, asset allocation scheme and capital protected (dynamic asset allocation-direct exposure), 2.5% of average annual net asset in case of income, aggressive income, index, fund of funds and commodity schemes (cash settled. 2% of average annual net assets in case of money market, commodity scheme (deliverable) and capital protected schemes, that has been verified by the trustee and paid in arrears on monthly basis.
True
False
Manager of index funds buy a portfolio that is a mirror image of an index and therefore more research and expertise is required to manage such funds.
True
False
The main expenses payable by the Fund to the investors are: Remuneration payable to AMC, Trustee fee to Trustee (Usually 0.5%), Audit Fee to the Auditors, Brokerage to the brokers (variable), Formation cost including legal fee, Rating fee, Legal fee, printing of accounts.
True
False
The structure of having a custodian_________the risk by separating the fund managers from physical holding of securities *
Enhance
Mitigates
Demolish
Equal
Board shall meet not less than 2 times in a calendar year *
True
False
For the purpose of exercising his powers under sub”sections (1) and (2) of section 30, an investigating officer of the Commission may enter any place or building by force, if necessary. If, on enquiry conducted in accordance with the rules it is found that the exercise by an investigating officer of his power under sub”section (2) was vexatious, excessive or with mala fide intent such officer shall be dismissed from service, and shall be guilty of an offence punishable with fine which may extend to *
8 hundred thousand rupees and imprisonment for a term not exceeding 6 Months
6 hundred thousand rupees and imprisonment for a term not exceeding 6 Months
5 hundred thousand rupees and imprisonment for a term not exceeding one year
7 hundred thousand rupees and imprisonment for a term not exceeding 3 Months
As per the SECP Act the Commission shall consist of such number of Commissioners, including the Chairman, what is the minimum and max number of commissioners which make a commission. *
Min 6 and Max 8
Min 3 and Max 5
Min 4 and Max 7
Min 5 and Max 7
When an order has been made under sub”section (1) an investigating officer of the Commission may, by notice in writing, require any person to produce before him such books, registers or documents as are in the custody or under the control of that person.(A) A person who fails deliberately to produce any such books, registers or documents as are required by the Commission or an investigating officer; or(B) A person obstructs or hinders an investigating officer while exercising any of the powers under this section; shall be guilty of an offence and shall be liable on conviction to a fine which may extend to million rupees or to imprisonment for a term not exceeding , or to both. *
1 Million Rs & 1 Month
1 Millions Rs & 5 Month
5 Millions Rs & 5 Months
None of the above
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