NISM-Series-XV - Research Analyst Certification Exam - 24

NISM-Series-XV - Research Analyst Certification Exam - 24

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Q 1. What responsibilities are assigned to PFRDA under the PFRDA Act, 2013?

a) To regulate monetary policy.

b) To design the structure of funds in the National Pension System (NPS).

c) To regulate the insurance sector.

d) To administer the Companies Act.

e) To manage foreign exchange.
 
Q 2. What does Yield to Maturity (YTM) take into consideration that Current Yield does not?

a) Only coupon payments

b) Principal repayment

c) Future cash flow from the bond

d) Market price of the bond

e) Dividends of the bond
 
Q 3. What is the purpose of auditors checking control systems in a company?

a) To verify every transaction in detail.

b) To ensure the accuracy of accounting.

c) To prevent major issues in recording transactions.

d) To provide a disclaimer in the audit report.

e) To issue a Qualified Report.
 
Q 4. What is considered illegal as per the regulations related to unfair trade practices in securities markets?

a) Transparent mobilization of funds for a collective investment scheme.

b) Unambiguous acts or omissions listed in the regulations.

c) Legal action by a registered market participant.

d) Non-exhaustive acts or omissions falling within the purview of regulation 3.

e) Any act or omission described in sub-regulation by a certain category of persons.
 
Q 5. What is the primary focus of Microeconomics?

a) Factors influencing aggregate supply and demand

b) Understanding the general state of the economy

c) Individual and firm decision-making on buying and consuming

d) Overall price levels and inflation rates

e) International trade dynamics and balance of payment
 
Q 6. How do corporate actions such as dividends, bonuses, splits, and rights issues impact a company's share price?

a) They have no impact on the share price.

b) They always lead to a decrease in share price.

c) They may affect the share price in various ways.

d) They consistently result in a significant increase in share price.

e) They cause a predictable pattern of share price decline.
 
Q 7. What does Regulation 18(3) specify regarding the publication of research reports or public appearances after acting as a manager in a public offering of securities?

a) No restrictions

b) Fifteen days before the lock-up agreement

c) Fifteen days following the lock-up agreement

d) Thirty days before the lock-up agreement

e) Fifteen days before and after the lock-up agreement
 
Q 8. What may occur as a result of suppliers increasing production capacity during a commodity cycle?

a) Prices tend to rise

b) Prices tend to fall

c) Prices stabilize

d) Suppliers reduce production capacity

e) Prices become independent of economic cycles
 
Q 9. What is a potential defensive strategy for a company in the context of share buybacks?

a) Issuing more shares

b) Acquiring from another company

c) Paying higher dividends

d) Undertaking a shared split

e) Engaging in a share buyback
 
Q 10. What is the primary requirement for Investment Advisers and Research Analysts regarding prior approval for advertisements?

a) Prior approval is not required

b) Approval from any recognized supervisory body

c) Prior approval from SEBI

d) Approval from a legal advisor

e) Approval from a government authority
 
Q 11. Which industry is presented as an example of an attractive industry based on the discussed features?

a) Sugar industry

b) Healthcare industry

c) Oil and gas industry

d) Education industry

e) Textile industry
 
Q 12. Why is Enterprise Value for EBITDA (EV/EBITDA) preferred in capital-intensive industries?

a) It is simpler to calculate

b) It is more commonly used

c) It is neutral to capital structure

d) It considers only the historical cost of assets

e) It accounts for the choice of depreciation method
 
Q 13. In the example provided, which entity issued USD bonds in February 2020?

a) GMR Infrastructure Ltd

b) International Finance Corporation

c) Delhi International Airport Limited

d) Reserve Bank of India

e) Securities and Exchange Board of India (SEBI)
 
Q 14. What metric is crucial for the IT services/BPO/KPO sector, indicating the number of customers billed more than a million USD per annum?

a) Net Interest Margin

b) Average Revenue per FTE

c) Bench Strength

d) Content Acquisition Cost

e) Customer Concentration Ratio
 
Q 15. In which type of instrument is inflation risk highest?

a) Equity Shares

b) Bonds

c) Fixed Deposits

d) Mutual Funds

e) Government Securities

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