Research Analyst Certification Free Demo Test 2 /20 Research Analyst Certification Free Demo Test 2 1 / 20 1. Who can exert a lot of pressure and dictate prices, if there are a large number of sellers with similar products/services? a. Consumers b. Producers Explanation:In a competitive market with many sellers offering similar products, consumers can exert pressure and influence prices. 2 / 20 2. Which of the following is considered as 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 the above Explanation:All the mentioned factors are considered economic factors in PESTLE analysis. 3 / 20 3. What does Industry structure in Structure Conduct Performance (SCP) analysis refer to? a. Market size b. Industry Growth rate c. Relationship among the various players in the industry d. All the above Explanation:Industry structure in SCP analysis considers market size, industry growth rate, and relationships among industry players. 4 / 20 4. Shareholding pattern and changes therein have to be informed by the companies to exchanges periodically. a. True b. False Explanation:Companies are required to disclose their shareholding pattern and any changes to stock exchanges periodically. 5 / 20 5. A good analyst must keep track of disclosures, commitments, and deliveries of an organization periodically to adjudge a company. a. False b. True Explanation:Analysts monitor various aspects, including disclosures, commitments, and deliveries, to assess and analyze the performance and outlook of a company. 6 / 20 6. Which of these Qualities are desired in a good research analyst? a. Clarity in financial concepts b. Knack for numbers and interpretation c. Ability to read and understand financial statement d. All the above Explanation:A good research analyst should possess all the mentioned qualities for effective analysis. 7 / 20 7. A bond is issued at a face value of Rs. 100 and a coupon of 10% p.a. The interest rates in the market have increased subsequently. This bond is likely to quote at: a. At a price above face value b. At a price below face value Explanation:When market interest rates increase, the value of existing bonds with lower coupon rates tends to decrease, causing them to trade at a price below face value. 8 / 20 8. The time span over which price and volume are observed factors in the impact of long term factors that influence prices over a period of time. a. True b. False Explanation:The time span considered in technical analysis influences the impact of long-term factors, affecting price and volume observations. 9 / 20 9. In technical analysis, the impact of day to day fluctuations in prices is annulled by which of the following factors? a. Increasing Time Period of price charts b. Using liquidity parameter along with prices c. Using Moving Averages d. None of the above Explanation:Moving averages are used in technical analysis to smooth out day-to-day fluctuations and identify trends. 10 / 20 10. Focus of microeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate etc. a. True b. False Explanation:Microeconomics focuses on individual markets and agents rather than aggregate factors like GDP and unemployment. 11 / 20 11. Corporate profits, computed after deducting business expenses and other specified items, are taxed at the _______ rate for Indian companies. a. 0.2 b. 0.3 c. 0.4 d. 0.5 Explanation:Corporate profits in India are taxed at the rate of 0.3 after deducting business expenses and specified items, as marked correct. 12 / 20 12. Delisting of shares refers to the ________ removal of the shares of a company from being listed on a stock exchange. a. Permanent b. Temporary c. Voluntary d. None of the above Explanation:Delisting, marked as permanent, means the removal of a company’s shares from a stock exchange, typically ending public trading of those shares. 13 / 20 13. A company cannot make bonus issue if it has defaulted on: a. Any fixed deposit raised b. Principal on any debt security issued c. Payment of interest d. All of the above Explanation:The correct answer, “All of the above,” explains that a company cannot issue bonus shares if it has defaulted on various financial obligations, ensuring financial stability. 14 / 20 14. If an investor holds 100 shares of a company with a face value of Rs. 10 each, a stock split in the ratio of 1:2 will increase the number of shares held by him to __________. a. 500; go down to Rs. 5 b. 500; go down to Rs. 2 c. 200; go down to Rs. 5 d. 200; go down to Rs. 2 Explanation:In a 1:2 stock split, the correct explanation is that an investor holding 100 shares would see the number increase to 200, with the face value per share reduced to Rs. 5. 15 / 20 15. In what type of action the acquiring company acquires all or a substantial portion of the stock of the target company and both entities typically continue to exist? a. Merger b. Consolidation c. Acquisition d. All of the above Explanation:Acquiring all or a substantial portion of the target company’s stock while both entities continue to exist defines an acquisition, as marked correct. 16 / 20 16. A company can buy back its shares out of: a. Securities premium account b. Reserves which are availablefor distribution as dividend c. Proceeds of fresh issue of shares or other specified securities d. All of the above Explanation:A company can buy back its shares from various sources, including the securities premium account, reserves available for distribution as dividends, and proceeds from fresh share issues. 17 / 20 17. During a slowdown in economies, unemployment rate _______ . a. Rises b. Falls c. There is no effect on unemployment rate d. None of the above Explanation:When an economy is going through tough times, less jobs are created and so the unemployment rate rises. 18 / 20 18. Focus of microeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate etc. State whether True or False. a. True b. False Explanation:Microeconomics focuses on individual households and firms. Macroeconomics deals with the economy as a whole. In other words, the focus of macroeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate etc. 19 / 20 19. ____________ has the right to buy an asset at a predetermined price. a. Call Buyer b. Put Buyer c. Call Writer d. Put Writer Explanation:In Options, the buyers have the RIGHT but no obligations. A CALL BUYER has the right to buy an asset at a predetermined price A PUT BUYER has the right to sell an asset at a predetermined price. 20 / 20 20. The EBIT of a company is Rs 400000 and the EBIT % is 40% of the business. What is the Net Profit of the company if the Net Profit margin is 10%. a. Rs 10,000 b. Rs 1,00,000 c. Rs 40,000 d. Rs 16,000 Explanation:The EBIT is Rs 400000 which is 40% of the business ie. sales. So Sales = Rs 10,00,000 (4,00,000 / 40 x 100) Net Profit margin is 10% ie 10% of Rs 10,00,000 = Rs 1,00,000 Your score is 0% Restart quiz Exit
