NISM-Series-XV - Research Analyst Certification Exam - 30

NISM-Series-XV - Research Analyst Certification Exam - 30

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Q 1. What is emphasized as a ground rule for creating a good research report?

a) Extensive use of financial jargon.

b) Inclusion of exclusive information.

c) Clarity of idea.

d) Lengthy and detailed analysis.

e) Technical language.
 
Q 2. How does the face value of a share change in the event of a stock split?

a) It increases

b) It decreases

c) It remains the same

d) It becomes zero

e) It is multiplied by the stock split ratio
 
Q 3. What is the primary characteristic of "Other current assets"?

a) Likely to provide benefits over the long term

b) Likely to be received within one year

c) Representing cash and cash equivalents

d) Non-controlling interest in subsidiaries

e) Shown at fair market value
 
Q 4. Which regulatory authority is responsible for regulating the pension sector in India?

a) Reserve Bank of India (RBI)

b) Securities and Exchange Board of India (SEBI)

c) Insurance Regulatory and Development Authority of India (IRDAI)

d) Pension Fund Regulatory and Development Authority (PFRDA)

e) Ministry of Finance
 
Q 5. What is the drawback of the Current Yield method?

a) It does not consider coupon payments.

b) It annualizes returns inaccurately.

c) It only calculates returns for a single period.

d) It does not account for future cash flows from the bond.

e) It overestimates the market price of the bond.
 
Q 6. In what situations would auditors issue a "qualified report"?

a) Auditors disagree with the accounting policy.

b) Auditors are unable to verify any part of the financials.

c) Auditors have no issues with the financial report.

d) Auditors believe there are serious discrepancies.

e) Auditors have reservations about the financial statements.
 
Q 7. What is the consequence of fraudulent inducement by a market participant to enhance brokerage or commission income?

a) Ethical enhancement of income.

b) Legal exemption from regulations.

c) Deemed manipulative, fraudulent, or unfair trade practices.

d) Transparent and lawful business practices.

e) Enhancement of income without consequences.
 
Q 8. What is the primary assumption about human behavior in economic analysis?

a) People are emotional decision-makers.

b) People have unlimited resources.

c) People prioritize needs over wants.

d) People are rational decision-makers.

e) People always face abundance, not scarcity.
 
Q 9. What role do dividends and share buy-backs play in signaling to the market?

a) To confuse investors

b) To reduce stock volatility

c) To indicate predictable business phases

d) To provide information on outlook and strategy

e) To decrease market capitalization
 
Q 10. When is a research entity prohibited from publishing or distributing a research report or making a public appearance regarding an issuer's IPO, as per Regulation 18(2)?

a) Twenty days from the date of offer

b) Ten days from the date of offering

c) Fifteen days from the date of offering

d) Thirty days from the date of offer

e) Twenty-five days from the date of offering
 
Q 11. What typically happens to commodity prices during an expansionary phase?

a) Prices tend to fall

b) Prices remain stable

c) Prices go up driven by increased demand

d) Prices are independent of economic cycles

e) Prices are driven by unpredictable factors
 
Q 12. How does a share buyback impact earnings per share (EPS) for post-buyback shareholders?

a) It decreases EPS

b) It has no impact on EPS

c) It increases EPS

d) It fluctuates randomly

e) It depends on market conditions
 
Q 13. What is explicitly mentioned as a disclaimer that should be included in various communications with clients by Investment Advisers and Research Analysts?

a) Statements that are consistent with the risk profile

b) Disclaimer about guaranteed returns

c) Disclaimer about SEBI membership

d) Inclusion of factual details of awards received

e) Use of the SEBI logo
 
Q 14. What does Warren Buffet refer to as 'the moat' in business?

a) High competition in the market

b) Economic castles without entry barriers

c) Licensing requirements for businesses

d) Weak suppliers' bargaining power

e) Barriers to entry protecting a business
 
Q 15. In the given example, why might Company B appear to be a better investment compared to Company A when considering the PEG ratio?

a) Company B has a higher PE ratio

b) Company B has a lower growth rate

c) Company B has a lower EPS

d) Company B has a higher PEG ratio

e) Company B has a higher P/E ratio
 
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