NISM-Series-XV - Research Analyst Certification Exam - 31

Find More Mock Tests Here

Q 1. What distinguishes Family Offices from other financial management organizations?

a) Family Offices handle day-to-day accounting of families' income and expenses

b) Family Offices focus solely on investments without managing other aspects of financial planning

c) Family Offices exclusively work with single families, while others manage multiple families

d) Family Offices have no involvement in estate planning or tax planning

e) Family Offices primarily deal with retirement benefit schemes
 
Q 2. What does the ESG filter help investors with?

a) Automatic investments

b) Shortlisting potential investments

c) Increasing regulatory intervention

d) Reducing transparency

e) Limiting ethical criteria
 
Q 3. why is a checklist considered beneficial in decision-making?

a) It hides the decision-making trail.

b) It encourages emotional decision-making.

c) It avoids objective and facts-based decisions.

d) It ensures disciplined and methodical approaches.

e) It promotes lazy mistakes.
 
Q 4. What do Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) represent?

a) Profits available to equity owners

b) Earnings available to serve both equity and debt holders

c) Earnings from previous years

d) Trailing earnings

e) Forward earnings
 
Q 5. Which line item in the profit and loss account represents the amount spent towards the purchase of goods that are sold to customers without any additional processing?

a) Changes in inventory of WIP and finished goods

b) Cost of raw materials

c) Employee cost

d) Purchase of stock-in-trade

e) Depreciation and amortization
 
Q 6. According to the regulations, what does the term "insider" include?

a) Any person who reads financial news regularly.

b) Any shareholder of a publicly traded company.

c) Any person who frequently communicates with company officers.

d) Any person who holds shares in a company.

e) Any employee of a company.
 
Q 7. What risks are not eliminated by the principal protection in Principal-Protected Notes (PPNs)?

a) Credit risk

b) Market risk

c) Inflation risk

d) Interest rate risk

e) Liquidity risk
 
Q 8. How is Return on Capital Employed (ROCE) calculated?

a) ROCE = Net Profit Margin Asset Turnover Equity Multiplier

b) ROCE = EBIT / Capital Employed

c) ROCE = EBITDA / Net Sales

d) ROCE = PAT / Net-worth

e) ROCE = EBIT / Net Profit
 
Q 9. According to Regulation 6, what is one of the eligibility criteria for the grant of a research analyst certificate?

a) the applicant's age.

b) the number of research reports previously issued.

c) Capital adequacy requirements.

d) the applicant's nationality.

e) the applicant's social media presence.
 
Q 10. What is the relationship between savings and investments in an economy?

a) Savings and investments are unrelated

b) Savings are investments

c) Investments lead to savings

d) Savings are consumed

e) Investments are expenses
 
Q 11. What is a bonus issue in the context of corporate finance?

a) A cash dividend paid to shareholders

b) Additional issuance of shares to raise capital

c) An alternative to cash dividends where shares are issued to existing shareholders without consideration

d) A debt instrument issued by the company

e) A special dividend issued during a financial crisis
 
Q 12. What does Regulation 20(3) stipulate regarding research reports that contain a rating or price target assigned for at least one year?

a) Include a summary of daily news articles

b) Provide a graph of the daily closing price for the assigned period

c) Omit any historical price information

d) Exclude ratings and price targets from the report

e) Include only textual descriptions without visual aids
 
Q 13. How can changes in regulation or government policy contribute to a secular trend in an industry?

a) By creating efficiencies in the logistics industry

b) By decreasing per capita consumption of beer

c) By enabling increased use of electric vehicles

d) By causing a sudden change in cultural preferences

e) By providing an alternative to an existing product
 
Q 14. How do lenders typically assess a borrower's ability to repay a loan?

a) By evaluating the market value of collateral

b) By analyzing the borrower's credit score

c) By ensuring the business can generate cash flow to meet obligations

d) By considering the borrower's assets

e) None of the above
 
Q 15. What did economist John Maynard Keynes believe governments could do to impact economic performance?

a) Control consumer behavior

b) Adjust tax rates and government spending

c) Regulate foreign direct investment

d) Monitor global factors

e) Analyze industry business models

Find More Mock Tests Here