Solution of Chapter 10. Financial Markets (NCERT - Business Studies Part-II Book)

What is a Treasury Bill?

Explain the various segments of the NSE.

State any two reasons why investing public can expect a safe and fair deal in the stock market. (Point w.r.t safety of Transactions – Functions of the Stock Exchange).

What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?

Name any two details that need to be provided by the investor to the broker while filling a client registration form

What are the functions of a financial market?

“Money Market is essentially a Market for short term funds.” Discuss.

Distinguish between Capital Market and Money Market.

What are the functions of a Stock Exchange?

What are the objectives of the SEBI?

State the objectives of the NSE.

Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker

Explain the various Money Market Instruments.

Explain the recent Capital Market reforms in India.

Explain the objectives and functions of the SEBI

India’s largest domestic investor Life Insurance Corporation of India has once again come to government’s rescue by subscribing 70% of Hindustan Aeronautics’ `4,200-crore initial public offering.

a. Which market is being reflected in the above case?

b. State which method of floatation in the above identified market is being highlighted in the case? (Primary Market)

c. Explain any two other methods of floatation. (Private Placement, Offer through prospectus, offer for sale).

Lalita wants to buy shares of Akbar Enterprises, through her broker Kushvinder. She has a Demat Account and a bank account for cash transactions in the securities market. Discuss the subsequent steps involved in the screen-based trading for buying and selling of securities in this case.