12th Class Business Studies Financial Market / वित्तीय बाजार Question Bank

done Financial Marketing (Short) Total Questions - 46

• question_answer1)
  What are the functions of financial markets? Or "Financial market plays an important role in the allocation of scarce resources in an economy by performing various functions." Explain any three functions of financial market.                                                  [Delhi 2014, AI 2011] Or What is meant by 'Financial Market'? Explain any two functions of Financial Market.   [AI, Foreign 2011]
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• question_answer2)
  "Money Market is essentially Market for short term funds" Discuss.
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• question_answer3)
  What is a Treasury bill?                                                                                                                          [Delhi 2009]
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• question_answer4)

  Distinguish between Capital Market and Money Market.

  Or

  Distinguish between capital markets and money markets on any four basis.

  Or

  [Delhi, AI Foreign 2009; Delhi 2008C; Foreign 2007; AI 2006 C]

  Distinguish between ‘Capital Market’ and ‘Money Market’ on the basis of:

  (i) Participants (ii) Instruments (iii) Duration (iv) Liquidity (v) Investment Outlay.                 [Delhi 2014, 2006]

  Or

  Distinguish between 'Capital Market' and 'Money Market' on the basis of:

  (i) Expected return (ii) Safety (iii) Instruments (iv) Liquidity.                           [AI, Foreign 2006]

  Or

  You are a finance expert. One of your friends comes to you and tells you that the capital market and the money market are one and the same, whereas you differ with him. How would you convince him? Give any four reasons.                                                                                                                             [Delhi, Foreign 2004]

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• question_answer5)

  What are the functions of Stock Exchange?

  Or

  'In today's commercial world, the Stock-Exchange performs many vital functions which leads the investors towards positive environment/ Explain how by giving any four reasons.                [Delhi, Foreign 2011]

  Or

  Explain the functions of a stock exchange.

  [Delhi 2006, 2006C, 2008C, 2010, 2012; Al 2010, 2012; Foreign 2010; NCERT; CBSE Sample Paper 2011]

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• question_answer6)
  What are the objectives of SEBI?
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• question_answer7)
  What are the objectives of NSE?
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• question_answer8)
  What is OTCEI?
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• question_answer9)
  VERY SHORT ANSWER TYPE QUESTIONS                                             (1 MARK EACH) What do you mean by financial markets?                                                                      [Delhi (Foreign) 2012]
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• question_answer10)
  Name the two major alternative mechanisms through which allocation of funds can be done.                [Delhi 2013]
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• question_answer11)
  By linking the savers and the investors by mobilising funds between them, which function does financial market perform?                                                                                                                                                   [HOTS]
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• question_answer12)
  If the allocative function is performed well, what are the consequences that will follow?                              [HOTS]
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• question_answer13)
  State any one consequence of a well performed ‘allocative function’ of financial market.                     [Delhi 2013]
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• question_answer14)
  Financial markets facilitate easy purchase and sale of financial assets. Which function of financial markets is highlighted here?                                                                                                                                       [HOTS]
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• question_answer15)
  Give the meaning of Money Market.                                                                                             [Delhi 2013]
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• question_answer16)
  Give the meaning of ‘Secondary Market.’                                                                                      [Delhi 2013]
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• question_answer17)
  List any two characteristics of secondary market.                                                   [CBSE Sample Paper 2013]
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• question_answer18)
  State the essential function of ‘primary market’.                                                                             [Delhi 2013]
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• question_answer19)
  What is meant by ‘Capital Market’?                                                                                                             [AI 2012]
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• question_answer20)
  In what forms a company can raise capital through the primary market?
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• question_answer21)
  List any two methods of floating new issues in the primary market.
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• question_answer22)
  It refers to allotment of securities by a company to institutional investors and to some selected individuals. Name it.     [HOTS]                                        
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• question_answer23)
  Which market is meant for the purchase and sale of existing securities?                                                     [HOTS]
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• question_answer24)
  In this method of floatation in primary market, securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers. Name this method.                                                            [HOTS]
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• question_answer25)
  Which method of floatation involves issuing capital to the public through on-line system of stock exchange?    [HOTS]
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• question_answer26)
  Membership of a stock exchange is well regulated and its dealings are well defined according to the existing legal framework. What does this ensure to investing public?
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• question_answer27)
  "A stock market index is a barometer of market behaviours". Why?                                                          [HOTS]
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• question_answer28)
  "All securities can be traded in the stock exchange." Do you agree?                                                          [HOTS]
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• question_answer29)
  Mr. Ravi and Mr. Hari are promoting a new company. They are totally confused about how to raise funds from the market. Ravi is interested in new issue of shares through issue of prospectus. However, Hari is interested in Rights issue. As a financial advisor, advise whose method is appropriate in the given circumstances.
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• question_answer30)
  Enumerate any one objective of setting up of SEBI.                                                                    [Foreign 2012]
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• question_answer31)
  Give one regulatory function of SEBI.                                                                                           [Delhi 2012]
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• question_answer32)
  State one developmental function of SEBI.                                                                                       [AI 2012]
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• question_answer33)
  State any one ‘Protective Function’ of Securities and Exchange Board of India (SEBI).                       [Delhi 2012]
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• question_answer34)
  SHORT ANSWER TYPE QUESTIONS                                                  (3-4 MARKS EACH) “Money market is essentially a market for short - term funds”. In the light of this statement, state any three features of money market.                                                                                   [CBSE, Sample Paper, 2017]
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• question_answer35)
  Define Capital Market. State the two parts of capital market.                                                           [Delhi 2009]
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• question_answer36)

  Describe Primary Markets or New Issue Markets (NIM).

  Or

  Explain any four methods of floatation of new issue in the ‘Primary Market’.                             [AI 2012]

  Or

  What is meant by 'Primary Market'? Explain any two methods of floating new issues in the Primary Market.

  [Delhi, AI 2011]

  Or

  What is meant by primary market? List any four instruments used in the primary market to raise capital.                                                                                                                                                                                      [Delhi 2006C]

  State any five methods of floating new issues in the primary market.                           [AI, Foreign 2010]

  Or

  Define primary market. State any two methods of issuing securities in primary market.

  [CBSE Sample Paper 2011]

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• question_answer37)
  When are the market terms 'going public' and ‘water the equity’ used?                                                      [HOTS]
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• question_answer38)

  Distinguish between primary and secondary markets.  [Foreign 2007; Delhi 2009, AI 2009, Foreign 2009]

  Or

  Distinguish between 'Primary' and 'Secondary' market on the basis of:

  (i) Sale of securities                     (ii) Capital formation

  (iii) Determination of price           (iv) Location                                                      [Delhi 2006]

  Or

  What is meant by 'Primary Market'? Differentiate between 'Primary Market' and' Secondary Market' on any four points.      [Foreign 2012]

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• question_answer39)
                                                                                                                                

  What is meant by 'Money Market'? Explain any two instruments used in Money Market.   [Delhi, Foreign 2011]

  Or

  What is meant by 'money market'? Briefly explain the concept of 'call money'.                                   [Delhi 2007]

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• question_answer40)

  Explain the following money market instruments:

  (a) Commercial paper         (b) Commercial bill                                                          [AI, Foreign 2010]

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• question_answer41)
  The electronic book entry form of holding and transferring securities has eliminated the problems of eliminated the problems of theft and forgery. Discuss the concept indicated in the given statement.                                        [HOTS]
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• question_answer42)
  Why do money market instruments are more liquid as compared to capital market instruments?
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• question_answer43)
  "Securities and Exchange Board of India (SEBI) is the watchdog of stock market," Comment.        [HOTS]
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• question_answer44)
  "Primary Market directly contributes to capital formation, whereas, secondary market does so indirectly." Do you agree?                                                                                                                                       [HOTS]
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• question_answer45)
  State the first four steps which are involved in the screen-based trading for buying and selling of securities in the secondary market.                                                                                            [CBSE Sample Paper, 2017-18]
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• question_answer46)
  SEBI recently called for information and issued a show cause notice to NSE and its 14 officials seeking explanation on the Preferential Access allegations at the Exchange's Co-location facility. State the function that SEBI performed by doing so.                                                                                                 [CBSE Sample Paper, 2017-18]
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