Financial Markets — Class 12 Business Studies PYQs

Which of the following is not a protective function of Securities and Exchange Board of India :
[Max Marks: 1 | Set: 66/1/1 | Set: 66/1/2 | Set: 66/1/3]

Statement – I : Regulation of takeover bids by companies is one of the Regulatory functions of Securities and Exchange Board of India.
Statement – II : Training of intermediaries of securities market is one of the Development functions of Securities and Exchange Board of India.
Choose the correct option from the following :
[Max Marks: 1 | Set: 66/1/1 | Set: 66/1/2 | Set: 66/1/3]

'Tech Work' an Artificial Intelligence (AI) startup started in 2024. It was earning good profits. It wanted to expand its business and for its research and development, it required ₹ 100 crores.
The Chief Executive Officer of 'Tech Work' consulted the Finance Manager who suggested that there is a market which facilitates transfer of investible funds from savers to entrepreneurs seeking to establish new enterprises or expand existing ones through the issue of securities.
The management of 'Tech Work' decided to raise funds from the investors by issuing equity shares @ ₹ 200 per share for the first time.
(i) Name the type of capital market through which 'Tech Work' decided to raise funds for its expansion.
(ii) State three features of the market identified in (i) above.
[Max Marks: 4 | Set: 66/1/1 | Set: 66/1/2 | Set: 66/1/3]

In the ____________ market, prices are determined and decided by the management of the company.
(A) Primary
(B) Secondary
(C) Money
(D) Stock

Statement I : A financial market facilitates the transfer of savings from savers to investors.
Statement II : It gives savers the choice of different investments and helps to channelise surplus funds into the most productive use.
Choose the correct option from the following :
(A) Statement I is true and Statement II is false.
(B) Statement II is true and Statement I is false.
(C) Both the Statements are true.
(D) Both the Statements are false.

____________ is the process of holding securities in an electronic form.
(A) Rolling Settlement
(B) Registration
(C) Dematerialization
(D) Depository

Choose the incorrect statement from the following about functions of a Stock Exchange :
(A) Provides liquidity and marketability to new securities
(B) Ensures safety of transactions
(C) Contributes to economic growth
(D) Provides scope for speculation

Financial market allocates or directs funds available for investment into the most productive investment opportunity. In doing so, it performs the _____________ function.
(A) Creative
(B) Exchange
(C) Allocative
(D) Productive