Research Analyst Certification Free Demo Test 3 /20 Research Analyst Certification Free Demo Test 3 1 / 20 1. Which is the central bank in India with the responsibility of administering the monetary policy? a. Reserve Bank of India b. Central Bank of India Explanation:The Reserve Bank of India (RBI) is the central bank responsible for formulating and administering monetary policy in India. 2 / 20 2. Unhealthy practice in the Securities Markets includes which of the following? a. Transparency b. Insider Trading Explanation:Unhealthy practices in securities markets involve activities like insider trading, which is the use of non-public information for trading, leading to unfair advantages. 3 / 20 3. Which authority was set up with the primary responsibility of promoting old age income security by establishing, developing, and regulating pension funds? a. Insurance and Regulatory Development Authority b. Pension Fund Regulatory Development Authority Explanation:Pension Fund Regulatory and Development Authority (PFRDA) is responsible for regulating pension funds and promoting old age income security. 4 / 20 4. The major influencer(s) of public policies in an economy is/are a. Government b. Central Bank c. Both the above Explanation:Both the government and the central bank play significant roles in influencing public policies in an economy. 5 / 20 5. What is the earnings yield, if the price of a stock is Rs. 195 and EPS is Rs. 13? a. 4.67 percent b. 5.67 percent c. 6.67 percent Explanation:Earnings Yield is calculated as (EPS / Price) * 100. In this case, (13 / 195) * 100 = 6.67 percent. 6 / 20 6. Face value is the nominal value of a security stated by the issuer. a. True b. False Explanation:Face value is the nominal or par value of a security, as stated by the issuer. 7 / 20 7. How is the price to earnings ratio calculated? a. Earnings Per Share (EPS) / Current price of stock b. Current price of stock / Earnings Per Share (EPS) Explanation:Price to Earnings Ratio (P/E) is calculated by dividing the current market price of a stock by its earnings per share (EPS). 8 / 20 8. Calling feature in bonds is most prevalent when interest rates are expected to ________. a. Fall b. Rise Explanation:The calling feature is often used by bond issuers when interest rates are expected to fall, allowing them to refinance at a lower rate. 9 / 20 9. A convertible debenture is a type of loan issued by a company that can be converted into stock. a. True b. False Explanation:Convertible debentures are indeed a form of debt that can be converted into equity shares at a later date. 10 / 20 10. A global depositary receipt or GDR is a bank certificate issued in more than one country for shares in a foreign company. a. True b. False Explanation:GDRs are certificates representing shares in a foreign company and are traded on international stock exchanges. 11 / 20 11. __________ bias can prevent investors from benefiting from market corrections. a. Projection b. Herd Mentality c. Anchoring d. Confirmation Explanation:Herd mentality bias refers to the tendency of investors to follow the crowd, even if it goes against rational decision-making. 12 / 20 12. Business risk is also known as operating risk because this risk is caused by factors that affect the operations of the company. a. True b. False Explanation:Business risk, or operating risk, arises from factors that impact a company’s day-to-day operations. 13 / 20 13. Dividend is a small component of the total returns from equity. a. True b. False Explanation:While dividends contribute to returns, they are just one part; capital appreciation is another significant component of total returns. 14 / 20 14. For analysts, which is the authentic source to check facts on a Company? a. Annual Reports b. Media reports c. Business Portals Explanation:Annual reports are considered a reliable source for analysts to gather authentic information about a company. 15 / 20 15. Leverage ratio is a part of __________ parameter of business analysis. a. Quantitative b. Qualitative Explanation:Leverage ratio falls under the quantitative parameters of business analysis, involving numerical data. 16 / 20 16. Which of the following is not a valuation parameter for business analysis? a. P/BV Ratio b. P/E Ratio c. Demand & Supply of Securities in the market Explanation:Demand and supply of securities is not a direct valuation parameter but is crucial for market dynamics. 17 / 20 17. If a stock has exceeded its Target Price, an analyst may recommend __________. a. Buy b. Sell c. Hold Explanation:If a stock has surpassed its target price, an analyst may recommend selling, as the expected gains may have been achieved. 18 / 20 18. Which of the following items are found in an income statement? a. Inventory b. Long term debt c. Accounts Receivables Explanation:Inventory is typically included in the cost of goods sold section of the income statement, representing the cost of goods sold during a specific period. 19 / 20 19. Which section in the Cash Flow statement will provide the information about the amount of funds that a company borrowed during the preceding year? a. Investment Cash Flows b. Financing Cash Flows Explanation:Financing Cash Flows in the Cash Flow statement details the funds obtained or repaid through activities such as borrowing, issuing stock, or paying dividends. 20 / 20 20. Which of the following measures the ability of the company to satisfy its short-term obligations as and when they come due? a. Current Ratio b. High Return on Equity Explanation:The Current Ratio assesses a company’s ability to meet its short-term liabilities using its short-term assets. A higher current ratio indicates better short-term liquidity. High Return on Equity is a profitability measure, not a liquidity measure. Your score is 0% Restart quiz Exit
