Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Mutual Fund,Venture Capital,Life Insurance Policies and AIFS, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS mcq questions that explore various aspects of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS problems. Each MCQ is crafted to challenge your understanding of Mutual Fund,Venture Capital,Life Insurance Policies and AIFS principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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So, are you ready to put your Mutual Fund,Venture Capital,Life Insurance Policies and AIFS knowledge to the test? Let's get started with our carefully curated MCQs!

Mutual Fund,Venture Capital,Life Insurance Policies and AIFS MCQs | Page 2 of 18

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Q11.
How is the money collected from small investors in mutual funds utilized by the mutual fund trust?

a.

It is distributed among unit-holders as guaranteed returns

b.

It is invested in a single type of security for maximum returns

c.

It is invested in different securities based on the fund's objectives

d.

It is kept in fixed deposits for safety

Discuss
Answer: (c).It is invested in different securities based on the fund's objectives Explanation:The money collected is invested in different securities based on the objectives of the mutual fund.
Q12.
What are the investors in mutual funds known as?

a.

Stakeholders

b.

Unit-holders

c.

Shareholders

d.

Beneficiaries

Discuss
Answer: (b).Unit-holders Explanation:Investors in mutual funds are known as unit-holders.
Q13.
What is emphasized regarding the rate of returns in Mutual Fund investments?

a.

Assured rate of returns is always offered to investors

b.

Returns are subject to market risks and investment risks

c.

Past performance guarantees future performance

d.

Returns are guaranteed by the government

Discuss
Answer: (b).Returns are subject to market risks and investment risks Explanation:Mutual Fund investments are subject to market risks, and there is no assured rate of returns.
Q14.
What was the first regulation introduced by SEBI to develop and regulate the Mutual Fund sector?

a.

Mutual Fund Act of 1990

b.

Mutual Fund Regulations of 1993

c.

Mutual Fund Reform Act of 1985

d.

Mutual Fund Guidelines of 1988

Discuss
Answer: (b).Mutual Fund Regulations of 1993 Explanation:SEBI brought in the first regulation called Mutual Fund Regulations of 1993.
Q15.
How many mutual funds are currently operating?

a.

More than 20

b.

More than 30

c.

More than 40

d.

More than 50

Discuss
Answer: (c).More than 40 Explanation:At present, more than 40 mutual funds are working.
Q16.
What recent opportunity has the government opened for Mutual Funds in terms of raising funds?

a.

Domestic investors

b.

Overseas investors

c.

Institutional investors

d.

Government agencies

Discuss
Answer: (b).Overseas investors Explanation:The government has opened the door for Mutual Funds to tap overseas investors to raise funds.
Q17.
What is the limit set by the government for Mutual Funds to raise funds from overseas investors?

a.

$5 billion

b.

$10 billion

c.

$15 billion

d.

$20 billion

Discuss
Answer: (b).$10 billion Explanation:The government has allowed Mutual Funds to raise funds up to $10 billion from overseas investors.
Q18.
What is the key requirement for Mutual Funds raising funds from overseas investors?

a.

Compliance with FEMA

b.

Compliance with SEBI regulations

c.

Compliance with income tax norms

d.

Compliance with company law

Discuss
Answer: (a).Compliance with FEMA Explanation:Funds-raising by Mutual Funds from overseas investors is subject to restrictions and direction of FEMA (Foreign Exchange Management Act).
Q19.
What does a mutual fund scheme represent in terms of asset classes?

a.

An independent asset class

b.

A diversified asset class

c.

A pass-through vehicle for investment

d.

A separate asset class

Discuss
Answer: (c).A pass-through vehicle for investment Explanation:A mutual fund scheme is more like a pass-through vehicle for investment in an asset class.
Q20.
What unique facilities do mutual funds offer to investors?

a.

Complexity and high costs

b.

Affordability and simplicity

c.

Limited choices and rigid structure

d.

Low risk diversification

Discuss
Answer: (b).Affordability and simplicity Explanation:Mutual funds offer certain unique facilities of simplicity, affordability, risk diversification capacity, and professional fund management benefit.
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