Practice Set - 2 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

Why might companies issue foreign currency bonds despite currency risk?

Question 2

Which of the following best explains the role of intermediaries in financial markets?

Question 3

If an investor participates in a private placement, which limitation applies?

Question 4

Which of the following situations transfers currency risk from issuer to investor?

Question 5

Why are ETFs generally cheaper than mutual funds?

Question 6

An investor holds a warrant but chooses not to exercise it. What is the consequence?

Question 7

An analyst says ETFs combine features of both open-ended and closed-ended funds. Why?

Question 8

If a mutual fund allows investors to buy and sell units anytime directly from the fund, it is:

Question 9

Which of the following best describes an Equity Linked Debenture (ELD)?

Question 10

Which of the following is a hybrid feature of preference shares?

Question 11

Which of the following best describes why indices are weighted by market capitalization?

Question 12

Which of the following best explains how a long-term security can effectively behave like a short-term investment for an investor?

Question 13

If a company issues bonds in Japan denominated in US Dollars, this would be classified as:

Question 14

Why do convertible debentures generally carry lower interest rates than non-convertible debentures?

Question 15

Which of the following correctly describes fungibility in depositary receipts?

Question 16

A company issues new shares to the public for the first time. This is called:

Question 17

Which of the following best describes securitization?

Question 18

Which of the following best defines a derivative?

Question 19

If an investor buys an already issued share from another investor, this transaction occurs in:

Question 20

Which of the following instruments is most likely to have the highest liquidity?

Question 21

A closed-ended mutual fund differs from an open-ended fund because:

Question 22

Which of the following is the primary economic role of securities markets?

Question 23

What is the main advantage of the secondary market for investors?

Question 24

What is the main difference between Foreign Bonds and Euro Bonds?

Question 25

Practice Set - 2