CBSE-CLASS-XII SERIES Business-studies
Financial Markets
36 previous year questions.
Volume: 36 Ques
Yield: High
High-Yield Trend
8
2026 7
2025 21
2024 Chapter Questions 36 MCQs
01
PYQ 2024
medium
business-studies ID: cbse-cla
Explain the following as factors affecting ’Financing Decision’:
(b) Fixed operating costs
(ii) Cash flow position of the company
(b) Fixed operating costs
(ii) Cash flow position of the company
02
PYQ 2024
medium
business-studies ID: cbse-cla
is the process of holding securities in electronic form.
1
Financial Intermediation
2
Dematerialisation
3
Allocative Function
4
Mobilisation of Securities
03
PYQ 2024
medium
business-studies ID: cbse-cla
Match the functions of Securities and Exchange Board of India given in Column-I with their headings given in Column-II: Column- II A. Training of intermediaries of securities markets B. Regulation of takeover bids by companies
(b) Regulatory function
(ii) Protective function C. Controlling insider trading and imposing penalties for such practices
(iii) Development function
(b) Regulatory function
(ii) Protective function C. Controlling insider trading and imposing penalties for such practices
(iii) Development function
1
A(ii); B(iii); C(i)
2
A(i); B(ii); C(iii)
3
A(iii); B(i); C(ii)
4
A(iii); B(ii); C(i)
04
PYQ 2024
medium
business-studies ID: cbse-cla
____________________________ is the process of holding securities in an electronic form.
1
Rolling Settlement
2
Registration
3
Dematerialization
4
Depository
05
PYQ 2024
medium
business-studies ID: cbse-cla
Explain the following factors affecting dividend decision:
06
PYQ 2024
medium
business-studies ID: cbse-cla
State any three 'regulatory functions' of Securities and Exchange Board of India.
07
PYQ 2024
medium
business-studies ID: cbse-cla
Explain the relationship between 'Planning' and 'Controlling' functions of management with the help of any three points.
08
PYQ 2024
medium
business-studies ID: cbse-cla
The selection tests which are used to measure individual's potential for learning new skills are called:
1
Aptitude Tests
2
Intelligence Tests
3
Personality Tests
4
Interest Tests
09
PYQ 2024
medium
business-studies ID: cbse-cla
Differentiate between 'Money Market' and 'Capital Market' on any three bases.
10
PYQ 2024
medium
business-studies ID: cbse-cla
State any three protective functions of Securities and Exchange Board of India.
11
PYQ 2024
medium
business-studies ID: cbse-cla
Choose the incorrect statement from the following about functions of a Stock Exchange:
1
Provides liquidity and marketability to new securities
2
Ensures safety of transactions
3
Contributes to economic growth
4
Provides scope for speculation
12
PYQ 2024
medium
business-studies ID: cbse-cla
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 channelize surplus funds into the most productive use. Choose the correct option from the following:
1
Statement I is true and Statement II is false.
2
Statement II is true and Statement I is false.
3
Both the Statements are true.
4
Both the Statements are false.
13
PYQ 2024
medium
business-studies ID: cbse-cla
In the ______ market, prices are determined and decided by the management of the company.
1
Primary
2
Secondary
3
Money
4
Stock
14
PYQ 2024
medium
business-studies ID: cbse-cla
State any three protective functions of the Securities and Exchange Board of India (SEBI).
15
PYQ 2024
medium
business-studies ID: cbse-cla
Choose the incorrect statement about 'Money Market':
1
The main instruments traded in this market are Treasury bills, Trade bills, Commercial paper, and Certificates of deposit.
2
In this market, transactions entail huge sums of money as the instruments are quite expensive.
3
Participation in this market is by and large undertaken by institutional participants such as the Reserve Bank of India, banks, financial institutions, and finance companies.
4
It deals in medium and long-term securities.
16
PYQ 2024
medium
business-studies ID: cbse-cla
For holding securities in an electronic form, the investor has to open a demat account with an organisation called:
1
Depository
2
Securities and Exchange Board of India
3
Stock Exchange
4
Mutual Fund
17
PYQ 2024
medium
business-studies ID: cbse-cla
Statement-I: The basic function of a Stock Exchange is the creation of a continuous market where securities are bought and sold.
Statement-II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market.
Statement-II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market.
1
Statement-I is true and Statement-II is false.
2
Statement-II is true and Statement-I is false.
3
Both the Statements are true.
4
Both the Statements are false.
18
PYQ 2024
medium
business-studies ID: cbse-cla
Explain 'Advertising' and 'Personal Selling' as tools of promotion used by marketers.
19
PYQ 2024
medium
business-studies ID: cbse-cla
State any two advantages the pilots would get from this training.
20
PYQ 2024
medium
business-studies ID: cbse-cla
Identify from the following what is depicted in the given picture:
1
Trade Mark only.
2
Brand Name only.
3
Brand Mark only.
4
Both Brand Name and Brand Mark.
21
PYQ 2024
medium
business-studies ID: cbse-cla
From the following, identify the one which is not a function of the stock exchange:
1
Providing liquidity and marketability to existing securities.
2
Spreading of equity cult.
3
Ensuring the safety of transactions.
4
Ensuring that there is no scope for speculation.
22
PYQ 2025
medium
business-studies ID: cbse-cla
Explain the following as factors affecting 'Financing Decision':
(i) Fixed operating costs
(ii) Cash flow position of the company
(i) Fixed operating costs
(ii) Cash flow position of the company
23
PYQ 2025
medium
business-studies ID: cbse-cla
From the following, identify the one which is not a function of stock exchange:
1
Providing liquidity and marketability to existing securities
2
Spreading of equity cult
3
Ensuring safety of transactions
4
Ensuring that there is no scope for speculation
24
PYQ 2025
medium
business-studies ID: cbse-cla
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative: Assertion (A): When the allocative function is performed well, scarce resources are allocated to the most productive firms.
Reason (R): Allocative function directs funds into their most productive investment opportunity.
Reason (R): Allocative function directs funds into their most productive investment opportunity.
1
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation.
2
Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation.
3
Assertion (A) is true, Reason (R) is false.
4
Assertion (A) is false, Reason (R) is true.
25
PYQ 2025
medium
business-studies ID: cbse-cla
______ is the process of holding securities in electronic form.
1
Financial Intermediation
2
Dematerialisation
3
Allocative function
4
Mobilisation of securities
26
PYQ 2025
medium
business-studies ID: cbse-cla
Match the functions of the Securities and Exchange Board of India (SEBI) given in Column-I with their respective headings in Column-II:
| Column-I (Function) | Column-II (Heading) |
|---|---|
| A. Training of intermediaries of securities markets | (iii) Development function |
| B. Regulation of takeover bids by companies | (i) Regulatory function |
| C. Controlling insider trading and imposing penalties for such practices | (ii) Protective function |
1
A(ii); B(iii); C(i)
2
A(i); B(ii); C(iii)
3
A(iii); B(i); C(ii)
4
A(iii); B(ii); C(i)
27
PYQ 2025
easy
business-studies ID: cbse-cla
Which of the following statement is correct with respect to ’Exchange Mechanism’, a feature of Marketing?
1
For an exchange it is necessary that there should be involvement of at least three parties.
2
The parties do not have the freedom to reject other parties’ offer.
3
The acceptance of the offer for each party has to take place on the basis of compulsion.
4
For an exchange it is necessary that each party should be capable of offering something of value to the other.
28
PYQ 2025
easy
business-studies ID: cbse-cla
Match the concepts of marketing in Column- I with their respective explanations in Column- II:
| Column- I | Column- II |
|---|---|
| (a) Product concept | (i) Its main focus is on quality, performance and feature of the product. |
| (b) Selling concept | (ii) Its main focus is on satisfaction of customer needs. |
| (c) Marketing concept | (iii) Its main focus is on aggressively persuading buyer to purchase the existing product. |
| (d) Societal concept | (iv) Its main focus is on satisfaction of customer needs and society's well-being. |
Choose the correct options from the following:
1
a-iv, b-iii, c-ii, d-i
2
a-iii, b-ii, c-i, d-iv
3
a-ii, b-i, c-iii, d-iv
4
a-i, b-iii, c-ii, d-iv
29
PYQ 2026
medium
business-studies ID: cbse-cla
Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the following :
(i) Participants
(ii) Instruments
(iii) Duration
(i) Participants
(ii) Instruments
(iii) Duration
30
PYQ 2026
medium
business-studies ID: cbse-cla
State any three protective functions of Securities and Exchange Board of India (SEBI).
31
PYQ 2026
medium
business-studies ID: cbse-cla
State any three points of differences between ‘Primary Market’ and ‘Secondary Market’.
1
Based on Nature of Securities, Price Determination, and Entry.
2
Based on Capital Formation, Participants, and Geographical Location.
3
Based on Type of Capital, Risks, and Liquidity.
4
Based on Regulation, Management, and Dividends.
32
PYQ 2026
medium
business-studies ID: cbse-cla
State any three objectives of Securities and Exchange Board of India.
33
PYQ 2026
medium
business-studies ID: cbse-cla
Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the following: (i) Investment outlay (ii) Liquidity (iii) Safety.
34
PYQ 2026
medium
business-studies ID: cbse-cla
State any three development functions of Securities and Exchange Board of India (SEBI).
35
PYQ 2026
medium
business-studies ID: cbse-cla
Read the following statements : Assertion (A) and Reason (R).
Assertion (A) : The investing public gets a safe and fair deal on the stock market.
Reason (R) : The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative :
Assertion (A) : The investing public gets a safe and fair deal on the stock market.
Reason (R) : The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.
Choose the correct alternative :
1
Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
2
Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
3
Both Assertion (A) and Reason (R) are incorrect.
4
Assertion (A) is correct, but Reason (R) is incorrect.
36
PYQ 2026
medium
business-studies ID: cbse-cla
The purpose of opening a Demat Account with a Depository Participant (DP) is :
1
For holding and transferring securities in the Demat form
2
For entering into an agreement with broker
3
For making payment to stock exchange for any purchase of securities
4
For enabling cash transactions in the securities market
About Financial Markets - CBSE-CLASS-XII
Financial Markets is a vital chapter for CBSE-CLASS-XII aspirants. Mastering the concepts covered in this chapter is essential for securing a top rank.
By rigorously practicing the previous year questions associated with this chapter, you can identify high-yield topics, understand the examiner's perspective, and boost your confidence during the actual exam.
Frequently Asked Questions
Why focus on Financial Markets PYQs?
Analyzing PYQs for this specific chapter reveals the most frequently tested concepts and the typical complexity of questions, allowing you to tailor your study plan efficiently.
How to best use this analysis?
Review the topic breakdown to see which sub-topics within Financial Markets carry the most weight. Then, tackle the questions iteratively to solidify your understanding.