NISM-Series-XV - Research Analyst Certification Exam - 27
NISM-Series-XV - Research Analyst Certification Exam - 27
Q 1. What is the motive behind paying or offering money to induce a person to deal in any security, according to the regulations?
a) To facilitate legitimate securities trading.
b) To encourage reporting of accurate information.
c) To cause fluctuations in the price of securities.
d) To serve as a device for transferring beneficial ownership.
e) To create a false appearance of trading in the securities market.
Q 2. What is the significance of Maturity in bond markets?
a) It determines the interest rate
b) It affects changes in bond prices
c) It dictates the face value of the bond
d) It represents the coupon rate
e) It influences market capitalization
Q 3. What is the primary objective of cash flow analysis according to the text?
a) To analyze net cash flows independently.
b) Focus on non-recurring cash flows.
c) To understand sustainable and recurring cash flows.
d) Ignore non-recurring items impacting cash flows.
e) To emphasize the deceptive nature of net cash flows.
Q 4. According to Chapter II of the regulations, what does "tantamount to a manipulation of the price of a security" refer to?
a) Legitimate trading practices.
b) Engaging in securities trading for wrongful gain.
c) Creating a false or misleading appearance of trading.
d) Reporting accurate information during securities dealing.
e) Any act or omission causing fluctuations in the price of a security.
Q 5. What is a key risk associated with AT1 Perpetual Bonds compared to normal bonds?
a) Interest rate risk
b) Market risk
c) Credit risk
d) Liquidity risk
e) Increased risk due to the absence of fixed maturity
Q 6. What does the Accounts Receivable Turnover ratio reveal about a company's financial operations?
a) It indicates the efficiency of asset turnover.
b) It measures the liquidity of the company.
c) It assesses the profitability per rupee of sales.
d) It shows how fast the company converts sales into cash.
e) It evaluates the company's debt structure.
Q 7. When should existing research analysts comply with the capital adequacy requirement under Regulation 8(3)?
a) Within six months.
b) Within one year.
c) Within two years.
d) there is no specified timeframe.
e) After obtaining the certificate of registration.
Q 8. According to Robert Kiyosaki, what are the four broad categories into which the whole working population in the world is divided?
a) Labor, Services, Profits, Returns
b) Employees, Professionals, Entrepreneurs, Investors
c) Product, Income, Expenditure, Aggregate
d) GDP, GNP, Wages, Salaries
e) Inflation, Deflation, Unemployment, Growth
Q 9. How is the historical dividend track record of a company often assessed in terms of financial ratios?
a) Price-to-earnings ratio
b) Dividend yield
c) Debt-to-equity ratio
d) Payout ratio
e) Return on investment
Q 10. According to Regulation 19(i), what disclosure is required regarding the financial interest of the research analyst or research entity in the subject company?
a) Disclosure is not required
b) Disclosure of ownership and material conflicts of interest
c) Disclosure of compensation details
d) Disclosure of the research analyst's personal life
e) Disclosure of market conditions
Q 11. How do tracking metrics such as interest rates, inflation, public expenditure, and fiscal deficit help in understanding?
a) the survival of the fittest
b) the divide between the rich and the poor
c) the impact of globalization
d) the future trajectory of the economy
e) the integration of developing economies
Q 12. What was the ratio at which Adani Enterprise spun off its renewable energy business to create Adani Green Energy Limited?
a) 1000:761
b) 761:1000
c) 500:1
d) 1:1
e) 2:1
Q 13. What assurance or guarantee is disclaimed in advertisements and communications/correspondences with clients, as per SEBI directives?
a) Guarantee of profits in the securities market
b) Assurance of high returns to investors
c) Assurance of the intermediary's performance
d) SEBI's endorsement of the intermediary
e) Guarantee of no market risks
Q 14. What happens during the "pioneering stage" of the business life cycle?
a) Steep growth is witnessed as more customers adopt the product.
b) the industry has existed for long, and most potential customers are already using the product.
c) Change in customer preference or new technology leads to the industry's decline.
d) the goods or services find a new use in a different application, starting a new cycle.
e) the industry is just taking shape, and the concept is being proven.
Q 15. What does the Free Cash Flow for Equity model (FCFE) provide as an alternative to valuation?
a) Dividends
b) Operating cash flow
c) Net borrowings/(repayments)
d) Capital expenditure
e) None of the above