Nism

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NISM Financial Quiz

Test your knowledge on financial instruments and concepts with our engaging NISM Financial Quiz. Designed for learners at all levels, this quiz covers a range of topics including equity shares, debt capital, and market regulations.

  • Multiple-choice questions
  • Learn while you play
  • Perfect for students and professionals alike
50 Questions12 MinutesCreated by LearningFinance321
Which of the following is a hybrid security?
Equity shares
Preference shares
Non-convertible debentures
All the options above
Equity capital gives returns to the investors in the form of:
Dividend
Capital Appreciation
Both (a) and (b)
Debt capital is always raised for short-term periods.
True
False
Authorised capital is the maximum amount that can be issued or paid up.
True
False
The dividend declared by a company is a percentage of the Market value of its shares
True
False
Buyback of shares refers to repurchase of shares by the company from its existing shareholders.
True
False
Preference shareholders are paid dividend only if the company has sufficient profits.
True
False
Market value may be higher or lower than the face value of the debt instrument.
True
False
Floating Rate Bonds are called us plain vanilla bonds
True
False
The credit risk of a borrower is evaluated by credit rating agencies
True
False
Credit Rating will be considered as provisional, and not final
True
False
SEBI has provided guidelines for mutual funds on investments in unrated debt instruments
True
False
Instruments in money markets include Commercial papers, Certificates of deposit, Treasury Bills
True
False
A zero coupon bond is always issued at a premium
True
False
Warrants may be used by Trustee to increase their stake in the company
True
False
Convertible debentures are debt instruments that can be converted into equity shares of the company at a future date.
True
False
DRs allow overseas investors to easily invest in a company.
True
False
Foreign Currency Convertible Bonds (FCCB) are issued by Indian companies and subscribed to by investors in foreign currency.
True
False
Issuance of FCCBs is regulated by SEBI
True
False
Index Funds are also passive funds but are not traded on stock exchanges
True
False
REITs are trusts registered with SEBI that invest in infrastructure sector.
True
False
Holders of Depository Receipts do not have Dividend rights.
True
False
Securities and Exchange Board of India (SEBI) was established on April 12, 1993
True
False
Registrar and Transfer (R&T) agents are identified as ‘intermediaries’ by the SEBI Act and are regulated by SEBI.
True
False
The protection of investors’ interests is a secondary objective of SEBI
True
False
Insider trading is controlled by the regulations prescribed by
Reserve Bank of India (RBI)
Securities and Exchange Board of India (SEBI)
Association of Mutual Funds in India (AMFI)
Ministry of Corporate Affairs (MCA)
The Investor Education and Protection Fund (IEPF) is funded by unpaid dividends remaining unclaimed for at least_________.
Seven years
Five years
Eight years
Ten years
The Apex regulator of the securities markets in India is ________.
Reserve Bank of India (RBI)
Securities and Exchange Board of India (SEBI)
Association of Mutual Funds in India (AMFI)
Ministry of Corporate Affairs (MCA)
The RTA is the custodian of the investor data, both for a fund house or a corporate.
True
False
ISCs are the points of contact for all transactions and also facilitate sales proceeds of the fund house.
True
False
Investor Service Centers (ISCs) for the mutual fund houses serviced by the AMC
True
False
A depository may keep both the record keeping in-house, and outsource to an RTA.
True
False
Registrar and Transfer Agent (RTA) has a critical role in Corporate Actions:
Transfer of dividend through NEFT
Transfer of dividend through RTGS
C. Dispatch of dividend in case bank details are not available
All the options above
LODR Regulations allows the listed entities to appoint a share transfer agent or manage the facility in-house.
True
False
A Registrar to an Issue and Share Transfer Agent shall at all times exercise due diligence, ensure proper care and exercise independent professional judgment.
 
A Registrar to an Issue or Share Transfer Agent shall not discriminate amongst its clients, save and except on ethical and commercial considerations.
True
False
A Registrar to an Issue and Share Transfer Agent shall ensure that good corporate policies and corporate governance are in place.
True
False
This enhanced reporting to be done in addition to the half-yearly periodic reporting done by AMC as prescribed by SEBI.
True
False
Qualified RTAs are market intermediaries who service more than 2 crore folios. They are also referred to as:
Critical Infrastructure Institutions (CII)
D. Critical Institute on Infrastructure (CII)
D. Critical Institute on Investment (CII)
D. Common Institute on Infrastructure (CII)
Cyber-attacks and threats attempt to compromise the ___________, _________ and ____________ of the computer systems, networks and databases.
Confidentiality; Infrastructure; Availability
Confidentiality; Integrity; Availability
Criticality; Infrastructure; Availability
The securities that a mutual fund scheme invests in depend upon its ________.
Investment plan
Investment style
Tax scenario
Investment objective
The unit capital of a fund is the number of units issued multiplied by NAV of the fund.
True
False
The type of expenses that can be charged to a fund and its limit is decided by _______
Association of Mutual Funds in India
Sponsors of Asset Management Companies
Securities and Exchange Board of India
Board of Trustees of Asset Management Companies
Total Expense Ratio (TER) is charged to the fund at the end of the financial year.
True
False
Mutual funds declare the NAV of all their schemes on every business day.
True
False
RTAs will have to use the city wise PIN code file for top 200 cities provided by AMFI
True
False
All NRI transactions (where tax status code is NRI, OCI, PIO, FIIs, QFI) should be tagged as T-30 and shown in the AUM by Geography report separately.
True
False
The PIN code Master and T-30/ Foreign City Master will be reviewed by AMC
True
False
SEBI play an important role in tagging inflows to T-30 and B-30 locations.
True
False
SEBI has classified cities as ‘Top 30’ (T-30) and ‘Beyond top 30’ (B-30) cities
True
False
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