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.
221 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 fiscal deficit of a government is best described as —
- A. the excess of its total expenditure over its total revenue (excluding borrowings) ✅
- B. the excess of exports over imports
- C. the total money supply in the economy
- D. the interest paid on public debt
Answer: A — the excess of its total expenditure over its total revenue (excluding borrowings)
Why: Fiscal deficit is the shortfall when total government spending exceeds total revenue (excluding borrowings) — it shows how much the government must borrow.
💡 Fiscal deficit = spending − revenue (the borrowing gap).
2. A widening Current Account Deficit (CAD) generally indicates that a country's —
- A. exports far exceed its imports
- B. imports and other outflows exceed its exports ✅
- C. government has a budget surplus
- D. currency is strengthening
Answer: B — imports and other outflows exceed its exports
Why: A CAD arises when imports and other outflows exceed exports and inflows, often putting pressure on the currency.
💡 CAD = importing more than exporting.
3. The Consumer Price Index (CPI) primarily measures —
- A. the fiscal deficit
- B. wholesale price changes
- C. retail (consumer-level) price inflation ✅
- D. industrial output
Answer: C — retail (consumer-level) price inflation
Why: CPI tracks price changes at the retail/consumer level; WPI tracks wholesale prices.
💡 CPI = consumer (retail) inflation.
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