NISM-Series-XV - Research Analyst Certification Exam -6
NISM-Series-XV - Research Analyst Certification Exam -6
Q 1. What is the time frame within which the Board must communicate its decision to reject an application under Regulation 12(2)?
a) 15 days.
b) 30 days.
c) 45 days.
d) 60 days.
e) 90 days.
Q 2. How does an Expansionary monetary policy impact the economy?
a) Reduces money supply and increases interest rates
b) Cools down the economy
c) Lowers government spending
d) Boosts the economy by increasing money supply and reducing interest rates
e) Repays debts and acquires assets
Q 3. When might a company choose to consolidate its shares?
a) When share prices are high
b) When market perception is positive
c) When share prices are very low
d) When the company wants to issue more shares
e) When the economy is booming
Q 4. What is the responsibility of the compliance officer according to Regulation 26?
a) Execute trades on behalf of the research entity
b) Monitor compliance with taxation regulations
c) Ensure compliance with the Act, regulations, and circulars issued by the Board
d) Manage the financial accounts of the research entity
e) Conduct market research on behalf of the research entity
Q 5. What does analyzing and understanding secular trends help the analyst to comprehend?
a) Short-term market trends
b) Long-term trajectory of the business
c) Immediate economic displacements
d) Cross-industry cooperation
e) Geographic relocation for strategic reasons
Q 6. What does FCFF represent in the valuation process?
a) Cash flow available to equity shareholders
b) Cash flow before considering any cash flow for any source of capital
c) Cash flow available to all sources of capital
d) Cash flow available to debt holders
e) None of the above
Q 7. What are the assumptions made in research reports?
a) Hiding assumptions to maintain the mystery
b) Stating assumptions clearly in research reports
c) Avoiding the use of assumptions altogether r
d) Include assumptions only if they benefit the analyst
e) Leaving assumptions to be inferred by the clients
Q 8. What is the significance of focusing on Key Performance Indicators (KPIs) when studying an industry?
a) they provide insights into the company's structure
b) the y determines the industry's legal framework
c) KPIs are universal and applicable to all industries
d) KPIs to help identify industry trends and performance metrics
e) they primarily guide companies in their marketing strategies
Q 9. Why might PE for a leveraged firm be deceptive in business valuation?
a) It doesn't account for retained earnings
b) It relies on consolidated numbers
c) High debt levels in the business affect PE
d) It focuses on book value
e) It considers standalone numbers only
Q 10. What risks are associated with Equity-linked debentures (ELDs), despite providing capital protection?
a) Foreign exchange risk
b) Market risk
c) Liquidity risk
d) Interest rate risk
e) Credit risk
Q 11. Which of the following is considered an economic factor in PESTLE analysis?
a) Forex reserves
b) Monetary policies of the RBI
c) Country’s dependence on other countries in terms of important natural resources
d) All of the above
e) Political stability
Q 12. In the context of market risk, what does a Beta of 1 indicate?
a) the security price will be stable
b) the security price will be more volatile than the market
c) the security's price will move with the market
d) the security's price is unrelated to the market
e) security will be less volatile than the market
Q 13. How does a Merchant Banker contribute to the issuance process of securities?
a) Managing the clearing and settlement of trades
b) Holding securities in electronic form for investors
c) Coordinating with underwriters to determine pricing
d) Assisting issuers in accessing the secure market with a new issue
e) Actively trading on the secondary market
Q 14. What risks does the influence of a promoter group over the management create for minority shareholders?
a) It enhances audit committee efficiency
b) It prevents conflicts of interest
c) It may lead to actions that benefit the promoter group at the cost of minority shareholders
d) It reduces auditor fees
e) It mitigates agency risk
Q 15. Which section of the research report is considered fact-based?
a) Industry Overview.
b) Key Strengths.
c) Company Business.
d) Shareholding Pattern.
e) Key Concerns.
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