NISM Series XV Mock Test 2 - TheMFCentral

NISM Series XV Mock Test 2

NISM Series XV Exam | Mock Test 2

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1. Which of the following is part of a bottom-up approach?

A) Studying GDP and inflation

B) Studying sector growth

C) Studying individual companies first

D) Studying currency trends

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2. The issuer of a bond is also known as the:

A) Underwriter

B) Borrower

C) Trustee

D) Depositor

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3. Monetary policy in India is primarily controlled by:

A) Ministry of Finance

B) SEBI

C) RBI

D) NITI Aayog

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4. Which financial statement shows a company's profitability over a period?

A) Balance Sheet

B) Cash Flow Statement

C) Income Statement

D) Trial Balance

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5. Research report disclosures are mandated by:

A) RBI

B) SEBI (Research Analyst) Regulations, 2014

C) Companies Act

D) ICAI

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6. Which of the following is NOT a component of GDP?

A) Consumption

B) Investment

C) Imports

D) Inflation

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7. Which of the following is considered unethical for a research analyst?

A) Updating a research report

B) Trading ahead of publishing a recommendation

C) Disclosing conflicts of interest

D) Maintaining research notes

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8. A cyclical industry is one that:

A) Is unaffected by economic cycles

B) Grows exponentially

C) Rises and falls with economic cycles

D) Has stable demand

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9. Which component of ROE reflects the efficiency in using assets?

A) Net Profit Margin

B) Asset Turnover

C) Financial Leverage

D) Retention Ratio

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10. Which of the following is a secondary market activity?

A) IPO issuance

B) FPO issuance

C) Buying shares from a stock exchange

D) Private placement

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11. Top-down approach in equity research starts with:

A) Company Analysis

B) Peer comparison

C) Macroeconomic Analysis

D) Technical Indicators

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12. Which authority was set up with the primary responsibility of promoting old age income security by establishing, developing and regulating pension funds?

A. Association of Mutual Funds in India

B. Insurance and Regulatory Development Authority

C. Pension Fund Regulatory Development Authority

D. Securities Exchange Board of India

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13. Which organization publishes the Consumer Price Index in India?

A) SEBI

B) RBI

C) NSO

D) NITI Aayog

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14. Which of the following is a characteristic of a primary market?

A) Trades are settled instantly

B) New securities are issued

C) It involves only debt instruments

D) Only government securities are traded

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15. Research analysts in India are regulated by:

A) RBI

B) SEBI

C) IRDA

D) NSE

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16. NAV stands for:

A) Net Average Volume

B) Net Asset Value

C) Notional Allocation Value

D) Net Annual Value

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17. Which indicator is considered a leading indicator of the economy?

A) GDP

B) Unemployment rate

C) Stock market index

D) Inflation rate

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18. The dividend discount model is used to estimate:

A) Book value

B) Intrinsic value of stock

C) Return on assets

D) Capital structure

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19. Maintaining independence and objectivity is essential to:

A) Portfolio performance

B) Analyst compensation

C) Research credibility

D) Market manipulation

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20. What does SEBI stand for?

A) Securities and Equities Board of India

B) Securities and Exchange Board of India

C) Stock Exchange Board of India

D) Securities Evaluation Board of India

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21. Which ratio is used to evaluate a company’s liquidity?

A) Debt-Equity Ratio

B) Interest Coverage Ratio

C) Current Ratio

D) ROCE

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22. Market capitalization is calculated as:

A) Total assets / number of shares

B) Share price × number of shares outstanding

C) Net income × P/E ratio

D) Book value per share × EPS

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23. Unhealthy practice in the Securities Markets includes which of the following?

A. Disclosure

B. Transparency

C. Insider Trading

D. Surveillance

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24. Which is NOT part of the code of conduct under SEBI Research Analyst Regulations?

A) Honesty and integrity

B) Fair presentation of research

C) Front-running trades

D) Professional competence

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25. Which of the following methods is used in relative valuation?

A) DCF

B) P/E Ratio

C) Dividend Discount

D) Residual Income Model

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26. Which is not a type of debt instrument?

A) Bond

B) Debenture

C) Treasury Bill

D) Equity Share

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27. Which mutual fund scheme is best suited for conservative investors?

A) Equity Growth Fund

B) Sector Fund

C) Debt Fund

D) ELSS

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28. What does GDP stand for?

A) Gross Developed Product

B) Government Domestic Product

C) Gross Domestic Product

D) General Domestic Performance

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29. Porter’s Five Forces is used in:

A) Technical analysis

B) Industry analysis

C) Time value of money calculations

D) Auditing procedures

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30. Which of the following is a quantitative metric?

A) Corporate culture

B) Management quality

C) Debt-Equity Ratio

D) Board composition

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31. Which of the following is NOT a responsibility of a research analyst?

A) Portfolio Management

B) Company Analysis

C) Sector Analysis

D) Report Writing

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32. If risk-free rate = 5%, beta = 1.2, and market return = 12%, expected return using CAPM is:

A) 13.4%

B) 12.4%

C) 15.0%

D) 8.0%

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33. Which method is based on the present value of future earnings?

A) Book Value Method

B) Relative Valuation

C) Discounted Cash Flow (DCF)

D) Technical Valuation

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34. Which of the following is a debt instrument?

A) Equity share

B) Preference share

C) Bond

D) Warrant

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35. Which of the following is NOT a key financial ratio for company analysis?

A) P/E Ratio

B) Current Ratio

C) Interest Coverage Ratio

D) Fiscal Deficit Ratio

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36. Which of the following is NOT a part of Porter’s Five Forces?

A) Supplier Power

B) Regulatory Pressure

C) Buyer Power

D) Threat of New Entrants

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37. A company with a high P/B ratio is likely to be:

A) Undervalued

B) Fairly valued

C) Asset-heavy

D) Overvalued or expected to grow

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38. Which of the following typically increases during an economic expansion?

A) Unemployment rate

B) Corporate earnings

C) Inflation-adjusted bond yields

D) Bankruptcy filings

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39. Beta measures a stock’s:

A) Total risk

B) Diversifiable risk

C) Systematic risk

D) Credit risk

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40. Which ratio measures a company’s ability to pay interest?

A) Quick Ratio

B) Interest Coverage Ratio

C) Current Ratio

D) Gross Margin

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41. The P/E ratio of a company is calculated as:

A) EPS / Price

B) Price / EPS

C) ROE / EPS

D) Price / Book Value

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42. Corporate governance analysis falls under which category?

A) Quantitative

B) Technical

C) Qualitative

D) Fundamental

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43. Earnings Per Share (EPS) is calculated as:

A) Net profit / Total revenue

B) Net profit / Number of shares outstanding

C) EBIT / Total shares

D) Net worth / Total assets

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44. Which term best describes an investment with fixed maturity and interest payment?

A) Equity

B) Mutual Fund

C) Bond

D) Derivative

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45. Which metric is most appropriate to value a loss-making company?

A) P/E Ratio

B) EV/EBITDA

C) Price/Book Value

D) Dividend Yield

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46. Which is the central bank in India with the responsibility of administering the monetary policy?

A. State Bank of India

B. Reserve Bank of India

C. Central Bank of India

D. All of the above

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47. Which type of financial instrument gives voting rights to holders?

A) Preference Shares

B) Bonds

C) Equity Shares

D) Debentures

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48. Terminal value in DCF is used to estimate:

A) Intraday value

B) Value after projection period

C) Market capitalization

D) Book value

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49. Which of the following best describes the role of a research analyst?

A) Only buys and sells stocks on behalf of clients

B) Prepares research reports and makes investment recommendations

C) Handles accounting for listed companies

D) Audits investment portfolios

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50. Which of the following increases the present value of future cash flows?

A) Higher discount rate

B) Lower discount rate

C) Higher inflation

D) Lower terminal value

Your score is

The average score is 74%

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This NISM Series XV mock test will help you familiarize yourself with the exam format, assess your knowledge, and identify areas that may need further study.

Remember that while mock tests can benefit practice, it’s important to understand the concepts and principles behind each question thoroughly.

Good luck with your preparation for the NISM Series XV (Research Analyst) exam!

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