Top 150+ Solved Mutual Fund Management MCQ Questions Answer
Q. The difference between an international and a global fund is
a. global funds invest in both U.S. firms and those of other countries wherever International funds focus on firms outside the United States.
b. International funds invest in U.S. firms and those of other countries while global funds invest only in foreign firms.
c. international funds in Treasury securities but no U.S. firms while global funds invest in both.
d. there is no difference except in name.
Q. Which of the following is not true of global and international bond funds?
a. They may be subject to interest rate risk.
b. They may be subject to exchange rate risk.
c. Their expenses may be higher than those of domestic bond funds.
d. They are especially attractive to investors in a high tax bracket.
Q. High yield (junk-bond funds focus on relatively risky bonds issued by firms that are subject to
a. default risk
b. interest rate risk
c. exchange risk
d. management risk
Q. International bond funds
a. focus on bonds interest by non-U.S. firms or governments.
b. may hold bonds that offer a higher yield then the U.S. bound.
c. are subject to exchange rate risk.
d. All of the above correct.
Q. _______ mutual funds invest in both foreign bonds and U.S. bonds.
a. International bonds
b. Index
c. Treasury bond
d. Global bond
Q. Technology funds focus on technology-based firms. Which of the following statements regarding thosefirms is not true?
a. Many of those firms are relatively young.
b. They have a low degree of risk.
c. They have the potential for a high return.
d. They do not have a consistent record of strong performance.
Q. Existing shares of closed-ended mutual fund companies are purchased
a. from the investments company directly.
b. from the investment company through a broker.
c. from other investors in the stock market.
d. from a bank.
Q. In calculation the net assets value (NAV) which of the following is true?
a. Dividends are subtracted and expenses added
b. Interest is subtracted and expenses are added.
c. dividends are added and expenses are subtracted
d. Interest and other expenses are not included
Q. To calculate the NAV, the market value of the portfolio liabilities is the dividend by the ______ to arriveat a per-share basis.
a. original number of shares
b. share currently issued by the fund
c. maximum shear to be issued
d. average number of shares incomparable funds.
Q. An open-ended mutual fund may do all of the following except
a. sell shares directly to investors.
b. charge a fee to buy but not sell shares.
c. repurchase shares from investors who want to sell their shares.
d. have its shares traded on a New York Stock Exchange.
Q. The amount by which a close-ended fund's share price in the secondary market is above the fund's NAVis called the
a. market value
b. premium
c. discount
d. par value
Q. ______ is a tax that is imposed by the government on companies based on dividend paid to a company'sinvestors.
a. dividend distribution tax
b. return on investment tax
c. goods and services tax
d. corporate tax
Q. All dividends in Equity & Equity Oriented Funds will be taxed at _____ from 2018.
a. 5%
b. 10%
c. exempt up to 10%
d. not taxable at all