NCERT Solutions for Class 12 Business Studies Business Finance and Marketing Chapter 2

Financial Markets Class 12

Chapter 2 Financial Markets Exercise Solutions

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Multiple choice questions : Solutions of Questions on Page Number : 286

Q1 :  

Primary and secondary markets

(a) Compete with each other

(b) Complement each other

(c) Function independently

(d) Control each other


Answer :

Primary and secondary markets complement each other. Primary market deals with the issue of new securities. That is, through the primary market a company raises capital directly from the borrowers. On the other hand, secondary market deals in the purchase and sale of the existing securities. That is, once the securities are issued in primary market, they are then traded in the secondary market. It is in this sense that both the markets complement each other.

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Q2 :  

The total number of Stock Exchange in India is

(a) 20

(b) 21

(c) 22

(d) 23


Answer :

The total number of Stock Exchange in India is 23. However, as per the latest updates by SEBI, there are 25 Stock Exchanges in India.

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Q3 :  

The settlement cycle in NSE is

(a) T+5

(b) T+3

(c) T+2

(d) T+1


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Q4 :  

The National Stock Exchange of India was recognized as stock exchange in the year

(a) 1992

(b) 1993

(c) 1994

(d) 1995


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Q5 :  

NSE commenced futures trading in the year

(a) 1999

(b) 2000

(c) 2001

(d) 2002


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Q6 :  

Clearing and settlement operations of NSE are carried out by

(a) NSDL

(b) NSCCL

(c) SBI

(d) CDSL


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Short answerslong answersmultiple choice questions : Solutions of Questions on Page Number : 287

Q1 :  

What are the functions of a financial market?


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Q2 :  

Explain the various Money Market Instruments.


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Q3 :  

''Money Market is essentially a Market for short term funds''. Discuss.


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Q4 :  

What are the methods of floatation in Primary Market?


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Q5 :  

What is a Treasury Bill?


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Q6 :  

Explain the recent Capital Market reforms in India.


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Q7 :  

Distinguish between Capital Market and Money Market.


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Q8 :  

Explain the objectives and functions of the SEBI.


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Q9 :  

What are the functions of a Stock Exchange?


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Q10 :  

Explain the various segments of the NSE.


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Q11 :  

What are the objectives of the SEBI?


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Q12 :  

State the objectives of the NSE.


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Q13 :  

OTCEI was started on the lines of

(a) NASDAQ

(b) NYSE

(c) NASAQ

(d) NSE


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Q14 :  

What is the OTCEI?


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Q15 :  

To be listed on OTCEI, the minimum capital requirement for a company is

(a) Rs. 5 crores

(b) Rs. 3 crores

(c) Rs. 6 crores

(d) Rs. 1 crore


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Business Finance and Marketing - Business Studies : CBSE NCERT Exercise Solutions for Class 12th for Financial Markets will be available online in PDF book form soon. The solutions are absolutely Free. Soon you will be able to download the solutions.

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