NISM-Series-XV - Research Analyst Certification Exam - 23

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Q 1. What does the principle of debt security represent?

a) the interest paid on the bond

b) the face value of the bond

c) the market value of the bond

d) the coupon rate of the bond

e) the maturity date of the bond
 
Q 2. Why are significant accounting policies important for analysts?

a) They help in manipulating financials.

b) They define the methodology for accounting items.

c) They indicate continuous changes in accounting policies.

d) They provide information about non-recurring items.

e) They focus on net cash flows.
 
Q 3. What does dealing with securities involve that would be deemed a manipulative, fraudulent, or unfair trade practice?

a) Legitimately influencing the benchmark price.

b) Knowingly creating a false appearance of trading.

c) Engaging in normal trading activities.

d) Publishing accurate information about securities.

e) Operating as a device to transfer beneficial ownership.
 
Q 4. What distinguishes the coupon payment of AT1 Perpetual Bonds from normal bonds?

a) It is cumulative

b) It can be paid from distributable profits only

c) It is fixed and predetermined

d) It is non-cumulative

e) It is paid regardless of distributable profits
 
Q 5. How is the Accounts Payable Turnover ratio calculated?

a) Accounts Payable Turnover = Revenue / Accounts Receivable

b) Accounts Payable Turnover = Purchases / Accounts Payable

c) Accounts Payable Turnover = Net Sales / Total Assets

d) Accounts Payable Turnover = EBITDA / Net Sales

e) Accounts Payable Turnover = Current Assets / Current Liabilities
 
Q 6. What does "net worth" mean as per the explanation provided in Regulation 8?

a) Aggregate the value of paid-up share capital.

b) Aggregate the value of free reserves.

c) Total accumulated losses.

d) Paid-up share capital plus free reserves reduced by accumulated losses.

e) Aggregate the value of revaluation reserves.
 
Q 7. What is the Product Method for measuring national income deal with?

a) Aggregating flow of goods and services

b) Measuring aggregate income of individuals

c) Calculating the monetary value of final goods and services

d) Dividing the working population into categories

e) Computing the sum of the outputs of various sectors
 
Q 8. What does a company do when it chooses to return money to its shareholders in equal proportion?

a) Declares interim dividends

b) Retains profits for business investment

c) Declares final dividends

d) Engagement in mergers and acquisitions

e) Issues new shares
 
Q 9. What information is a research analyst or research entity required to disclose regarding compensation according to Regulation 19(ii)(a)?

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

b) Whether they have received any compensation from the subject company in the past twelve months

c) Whether they have received any compensation for brokerage services

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

e) Whether they have received any compensation for products or services other than investment banking
 
Q 10. What characterizes secular trends?

a) Non-permanent changes influenced by technology

b) Long-term changes occurring in the economy or industry

c) Highly predictable patterns in production and consumption

d) Temporary trends that eventually reverse

e) Patterns driven by change in economic cycles
 
Q 11. What is the purpose of a scheme of arrangement in the context of a company's financial obligations?

a) To merge with other companies

b) To settle issues with creditors or a certain class of shareholders

c) To issue new shares to existing shareholders

d) To initiate a debt restructuring process

e) To provide cash dividends to shareholders
 
Q 12. What is prohibited in advertisements as per SEBI directives for Research Analysts/Investment Advisors?

a) Extensive use of technical or legal terminology

b) Reference to past performance of the IA/RA

c) Inclusion of factual details of awards received

d) Statements that are consistent with the risk profile

e) Use of the SEBI Logo
 
Q 13. What may lead to the "reinvention and revival" stage in the business life cycle?

a) A new technology replaces the industry's product.

b) the industry has existed for long, and most potential customers are already using the product.

c) the goods or services find a new use in a different application.

d) Steep growth is witnessed as more customers adopt the product.

e) Change in customer preference or new technology leads to the industry's decline.
 
Q 14. In what situations would the FCFE model most likely be useful?

a) For companies in the defensive industry

b) For companies in the high-growth phase

c) For companies paying regular dividends

d) For companies with perpetual life

e) None of the above

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