Class 12 Finance MCQ Chapter 16 Mutual Fund

Class 12 Finance MCQ Chapter 16 Mutual Fund Solutions in English Medium to each chapter is provided in the list so that you can easily browse through different chapters Class 12 Finance MCQ Chapter 16 Mutual Fund Question Answer and select need one. Class 12 Finance MCQ Chapter 16 Mutual Fund Solutions Download PDF. AHSEC Class 12 Banking Multiple Choice Solutions.

Class 12 Finance MCQ Chapter 16 Mutual Fund

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. AHSEC Class 12 Finance Objective Type Solutions are part of All Subject Solutions. Here we have given HS 1st Year Banking Multiple Choice Question and Answer, HS First Year Banking MCQs Solutions for All Chapters, You can practice these here.

Mutual Fund

Chapter: 16

MCQ

1. Which of the following is the main objective of a mutual fund?

(i) To collect savings from investors and invest in securities.

(ii) To provide banking services.

(iii) To issue currency.

(iv) To act as an insurance company.

Ans: To collect savings from investors and invest in securities.

2. What is each equal portion of a mutual fund called?

(i) Share.

(ii) Unit.

(iii) Bond.

(iv) Dividend.

Ans: Unit.

3. The value of a mutual fund unit is governed by its __________.

(i) Nominal value.

(ii) Underlying investments.

(iii) Face value.

(iv) Loan amount.

Ans: Underlying investments.

4. The full form of NAV in mutual funds is:

(i) Net Asset Value.

(ii) National Asset Volume.

(iii) Net Available Value.

(iv) National Average Value.

Ans: Net Asset Value.

5. Which party is responsible for safekeeping of the fund’s assets?

(i) Sponsor.

(ii) Trustee.

(iii) Custodian.

(iv) Investor.

Ans: Custodian.

6. Which scheme allows investors to buy and sell units at any time?

(i) Closed-ended fund.

(ii) Fixed deposit.

(iii) Open-ended fund.

(iv) Interval fund.

Ans: Open-ended fund.

7. What is the typical initial offer price of a mutual fund unit in India?

(i) Rs. 1.

(ii) Rs. 10.

(iii) Rs. 50.

(iv) Rs. 100.

Ans: Rs. 10.

8. What does SIP stand for in mutual funds?

(i) Systematic Income Plan.

(ii) Simple Investment Policy.

(iii) Systematic Investment Plan.

(iv) Special Interest Plan.

Ans: Systematic Investment Plan.

9. Which type of fund invests in both equities and interest-bearing instruments?

(i) Growth fund.

(ii) Balanced fund.

(iii) Bond fund.

(iv) Stock fund.

Ans: Balanced fund.

10. Who manages the investment of funds in a mutual fund?

(i) Investors.

(ii) Custodian.

(iii) Asset Management Company (AMC).

(iv) Banker.

Ans: Asset Management Company (AMC).

11. Closed-ended funds are listed and traded on the __________.

(i) Stock exchange.

(ii) RBI.

(iii) Central bank.

(iv) Commodity market.

Ans: Stock exchange.

12. Which type of fund is best for investors seeking regular income?

(i) Growth-oriented fund.

(ii) Balanced fund.

(iii) Income-oriented fund.

(iv) Stock fund.

Ans: Income-oriented fund.

13. Which fund offers both the benefit of capital appreciation and regular income?

(i) Tax relief fund.

(ii) Money market fund.

(iii) Balanced mutual fund.

(iv) Real estate fund.

Ans: Balanced mutual fund.

14. The term “lock-in period” is most closely associated with which fund type?

(i) Open-ended fund.

(ii) Tax relief fund (ELSS).

(iii) Balanced fund.

(iv) Stock fund.

Ans: Tax relief fund (ELSS).

15. Which of the following is a benefit of mutual fund investment?

(i) Diversification.

(ii) High brokerage charges.

(iii) Delayed payments.

(iv) Unskilled management.

Ans: Diversification.