NISM XV Fundamental Analysis — Practice Questions
Practice fundamental analysis questions for NISM Series XV — economic, industry and company analysis (EIC), financial statements, and quality of earnings, each with a clear explanation.
129 questions on Fundamental Analysis in the ScoreSetu bank — each with a detailed explanation and, where useful, a memory hook.
What this topic covers
- EIC framework
- Reading financial statements
- Industry & competitive analysis
- Earnings quality
Free sample questions
1. The tyre industry in a country comprised of three organised players and several unorganised players. A sample survey revealed that around 20% of total sales came from unorganised sector. The three major companies (organised players) reported revenue of Rs 6,000 crore, Rs 8,000 crore and Rs 10,000 crore. Which of the following is closest to the fair estimate of overall size of tyre market in that country?
- A. Rs 30,000 crore ✅
- B. Rs 48,000 crore
- C. Rs 36,000 crore
- D. Rs 24,000 crore
Answer: A — Rs 30,000 crore
Why: If the unorganised sector market share is 20%, the balance 80% is of the organised sector. The sale of the organised sector is Rs 6000 cr + Rs 8000 cr + Rs 10000 cr = Rs 24000 cr Rs 24000 cr sale is 80% sale of the tyre industry. So 100% will be ? 24000 cr x 100 / 80 = Rs 30,000 cr So the overall tyre market is of Rs 30,000 cr
2. Identify which condition is most likely to aid the central bank to follow expansionary monetary policy?
- A. High inflation
- B. Low inflation ✅
- C. High fiscal deficit
- D. High digitalisation
Answer: B — Low inflation
Why: Low inflation rate enables central banks to loosen their monetary policy and extend liquidity in the market. With relative easy availability of money and decrease in prices, consumers start buying goods and services. This results in economic activity picking up and eventually results in return of expansionary phase.
3. As per the Boston Consulting Group (BCG) Analysis, the business segment which is fast growing but has a low market share are known as ______ .
- A. Question Marks ✅
- B. Stars
- C. Cash Cows
- D. Dogs
Answer: A — Question Marks
Why: As per the BCG matrix, business segments can be classified as: Stars : These are segments in a business where market is growing rapidly and company is having a large market share. Cash Cows : These are segments which require low cash infusion for investment to maintain market shares because of low growth prospects but at the same time steadily generate cash for the company from the established market share. Question Marks : Business segments in a fast growing market, but having low market share. Dogs : Business segments, which have slow growth rates and intense competition.
💡 BCG: high GROWTH + low share = QUESTION MARK; high growth + high share = STAR; low growth + high share = CASH COW; low growth + low share = DOG.
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