NISM-Series-XV - Research Analyst Certification Exam - 32

Explore Additional Mock Tests Here

Q 1. In addition to being a monetary authority, what is another role of the Reserve Bank of India (RBI)?

a) Regulation and supervision of the financial system.

b) Issuing currency and coins.

c) Management of foreign exchange.

d) Developmental role to support national objectives.

e) Banking functions such as managing government securities.
 
Q 2. In the context of secured debt, what do investors have rights over in case of default?

a) Voting rights

b) Assets of the issuing company

c) Dividend payments

d) Equity shares

e) Convertibility options
 
Q 3. What does a business with negative investment cash flows need to finance its expansion?

a) Accumulated positive operating cash flows

b) Negative operating cash flows

c) Positive financing of cash flows

d) Positive operating cash flows

e) Sustainable and recurring cash flows
 
Q 4. Which of the following instances is considered an act of fraud according to the regulations?

a) Dealing with security to transfer beneficial ownership.

b) Inducing others to buy securities to secure a minimum subscription.

c) Reporting true information during securities dealing.

d) Publishing accurate information about securities.

e) Engaging in legitimate trading practices.
 
Q 5. How does fundamental analysis differ from technical analysis regarding investment philosophy?

a) Fundamental analysis focuses on short-term fluctuations, while technical analysis is concerned with long-term trends.

b) Fundamental analysis relies on historical market data, while technical analysis evaluates business fundamentals.

c) Fundamental analysis is concerned with long-term investing, while technical analysis is based on short-term fluctuations.

d) Technical analysis ignores the fair value of stocks, while fundamental analysis uses technical indicators.

e) Both fundamental and technical analysis have the same investment philosophy.
 
Q 6. Why is peer comparison considered critical for analysts?

a) It simplifies financial analysis.

b) It helps understand past performance.

c) It provides a snapshot of industry trends.

d) It identifies the competitive position of the company.

e) It focuses on historical data.
 
Q 7. What do Regulation 15 of SEBI (Research Analyst) Regulations require regarding internal policies and procedures for research analysts?

a) Internal policies are not specified in the regulations.

b) Internal policies are required only for large entities.

c) Internal policies are required to address potential conflicts of interest, promote objective research, and prevent market manipulation.

d) Internal policies are only necessary for trading activities.

e) All of the above 
 
Q 8. What is the primary premise of the fundamental analysis of equity shares?

a) Share prices reflect short-term market sentiment.

b) Value is driven by short-term price movements.

c) Market prices incorporate and reflect all relevant information.

d) Value should be driven by the returns generated by a company on its share capital.

e) Efficient Market Hypothesis (EMH) contradicts the value of equity shares.
 
Q 9. What corporate finance action is highlighted as critical for shareholder value creation?

a) Mergers and acquisitions

b) Equity expansion

c) Debt restructuring

d) Market capitalization

e) Asset divestiture
 
Q 10. What is the purpose of the internal policies and control procedures required by Regulation 15?

a) To maximize profits.

b) To prevent all trading activities.

c) To ensure independence from regulatory authorities.

d) To address conflicts of interest, promote objective research, and prevent market manipulation.

e) To discourage the use of research reports.
 
Q 11. What is fiscal policy, and how does it influence the economy?

a) Fiscal policy deals with monetary measures

b) Fiscal policy is unrelated to government finances

c) Fiscal policy influences aggregate demand, supply, savings, and investment

d) Fiscal policy focuses only on interest rates

e) Fiscal policy does not impact economic activity
 
Q 12. What is the main outcome for shareholders in a stock split?

a) Immediate economic benefit

b) Decrease in liquidity

c) Increase in face value

d) Immediate deterioration in overall ownership

e) No negative impact at the overall ownership level
 
Q 13. What additional disclosure is required by proxy advisers under Regulation 23(2)?

a) Disclosure of the CEO's salary

b) Disclosure of all employees' personal opinions

c) Disclosure of the proxy adviser's marketing strategies

d) Disclosure of the extent of research involved in a recommendation

e) Disclosure of the proxy adviser's favorite stocks
 
Q 14. What examples are given to illustrate the challenges in defining an industry?

a) Oil and Gas industry

b) Luxury car manufacturing

c) Telecommunication industry

d) Pharmaceutical industry

e) Textile industry
 
Q 15. What is the meaning of share swap in the context of a merger or acquisition?

a) Buying shares in the open market

b) Exchanging one set of shares for another

c) Selling shares to the highest bidder

d) Transferring shares to company insiders

e) None of the above

Explore Additional Mock Tests Here