NISM-Series-XV - Research Analyst Certification Exam - 20

Explore Additional Mock Tests Here 

Q 1. How is dividend income taxed in the hands of shareholders in India?

a) No tax on dividend income

b) Flat 10% tax on all dividend income

c) Taxed only for dividend income exceeding Rs. 10,000

d) Deducted at source by the company

e) Taxed at the company's corporate tax rate
 
Q 2. According to Regulation 19(iii), what disclosure is required in a public appearance regarding compensation?

a) Whether they have received any compensation from a third party

b) What was the subject company or was the client for the twelve months preceding the date of distribution of the research report

c) Whether they have received any compensation for brokerage services

d) Whether they have received any compensation for investment banking services

e) Whether they have received any compensation from the subject company in the past twelve months
 
Q 3. Which of the following is an example of a secular trend mentioned?

a) Expansion phase of the economic cycle

b) Digitalization of office space

c) Slow down in economic growth

d) Inventory cycle in commodity markets

e) Highly predictable patterns in production
 
Q 4. Under what circumstances might a company consider a debt restructuring?

a) To increase its debt position

b) To declare bankruptcy

c) Meeting obligations to lenders in financial distress

d) To issue new shares to shareholders

e) To merge with other companies
 
Q 5. What type of statements are prohibited in advertisements, specifically related to returns and risk?

a) Statements that are consistent with the risk profile

b) Any promise or guarantee of assured or risk-free return

c) Statements based on assumptions or projections

d) Superlative terms such as "Best" or "No. 1"

e) Inclusion of factual details of awards received
 
Q 6. What can be a deterrent for customers to switch to substitutes, as mentioned in the text?

a) High switching costs

b) Low product quality

c) Limited product variety

d) Intense competition

e) Expensive operating costs
 
Q 7. Why do investors often give higher importance to estimated future earnings than past performance?

a) Past performance is irrelevant

b) Future earnings are always higher

c) Investors prefer to speculate on future growth

d) Historical EPS is not accurate

e) Companies' earnings are for a particular period
 
Q 8. What are the distinguishing features of Partly Convertible Debentures (PCDs)?

a) they are fully convertible into ordinary shares

b) they are not redeemable on maturity

c) they are purely debt instruments without conversion features

d) they are partly convertible into ordinary shares under specified terms

e) they are backed by collateral support
 
Q 9. Which industry metric becomes a constraint for consumer durables during periods of high growth?

a) Net Interest Margin

b) Capital Adequacy Ratios

c) Volume and its growth

d) Average Price and its growth

e) Capacity and Utilization Rate
 
Q 10. When might the XIRR function in Excel be used to calculate CAGR?

a) For single cash flow only

b) For investments with a holding period of less than one year

c) For investments with multiple cash flows

d) For fixed deposits with a bank

e) For investments with fixed returns
 
Q 11. What role does the secondary market play in the securities market?

a) Creating financial assets

b) Issuing new securities

c) Facilitating trades in already-issued securities

d) Actively managing futures contracts

e) Allowing investors to exit long-term investments
 
Q 12. What is emphasized as a critical factor that helps a company outperform its competitors?

a) Market share

b) Product innovation

c) Quarterly financial reports

d) Employee satisfaction

e) Execution capabilities
 
Q 13. Why is it important to use risk-adjusted return measures when comparing investment portfolios or strategies?

a) To maximize returns

b) To minimize risks

c) To ensure comparable returns considering the difference in risk levels

d) To eliminate risk entirely

e) To simplify the comparison process
 
Q 14. What role does the Employees’ Provident Fund Organisation (EPFO) play in the EPF scheme?

a) EPFO administers and manages the funds, giving employees control over investments

b) EPFO invests funds in equity instruments as per employees' preferences

c) EPFO allows employees to choose annuity products upon maturity

d) EPFO is responsible for day-to-day accounting of employees' income and expenses

e) EPFO ensures employers contribute 12% of basic salary to the scheme
 
Q 15. What financial advantage can sustainable production processes lead to, according to the ESG framework?

a) Higher power consumption costs

b) Increased water usage costs

c) Increased risk perception

d) Reduced cost of power consumption and water usage

e) Higher cost of capital
 
Find More Mock Tests Here 

Explore Additional Mock Tests Here