Practice Mutual Funds (2.3) - Business Regulators and Intermediaries - ICSE 12 Business Studies

Practice: Mutual Funds

Lesson 2.3Business Regulators and Intermediaries

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10 questions

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4 cards from this section. Quick, good the night before a test.
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6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
4 questions · about 3 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is a mutual fund?
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Think of it as a group investment.
Question 2.
Name the regulatory body for mutual funds in India.
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It starts with 'S' and is related to securities.
3Question 3.
What is the primary purpose of mutual funds?
- To pool investment money
- To provide insurance
- To offer banking services
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Think about the role of sharing resources.
4Question 4.
True or False: Mutual funds are unregulated financial instruments.
- True
- False
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Remember the oversight authority of mutual funds.
Question 5.
An investor has ₹50,000 and decides to invest in a balanced mutual fund that allocates 60% to equity and 40% to debt. Calculate the amount invested in each category and discuss the implications of such a strategy.
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Consider what balanced means in terms of risk and return.
Question 6.
Critically analyze how mutual funds compare with direct stock investments. List three advantages of mutual funds and provide reasons.
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What are the key benefits that make mutual funds attractive over individual stock investments?

6 more questions in this section. Enroll free to practise them all.