Financial Markets MCQ Question and Answers, Class 12 Business Studies Chapter 10 MCQs for Practice

Financial Markets MCQs, Class 12 Business Studies Chapter 10 for CUET 2026

Prepare for CUET 2026 with Class 12 Business Studies Chapter 10 – Financial Markets MCQ Question and Answers on SuccessCDs.net. This resource contains MCQs which assists learners in identifying important features such as definition, characteristics, importance and functions of management.

Solving these Class 12 Business Studies Chapter 10 – Financial Markets MCQ Question Answers for CUET 2026 will improve your problem solving abilities and increase your confidence towards the examination. These MCQs are an excellent resource for revision or to test your understanding of concepts in business management, and will strengthen your confidence as well.

Financial Markets MCQs

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1. _______ is a market for lending & borrowing of short term funds

a.Money market

b.Capital market

c.All of the above

d.Primary market

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2. Question

a.Assertion (A) is true but Reason (R) is False

b.Assertion (A) is False but Reason (R) is true

c.Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

d.Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation  of Assertion (A)

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3. Stock exchange is known as __________ market for securities.

a.None of the above

b.Primary Market

c.Secondary Market

d.Capital market

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4. _____ is a link between savers & borrowers, helps to establish a link between savers & investors

a.Money Market

b.Financial market

c.None of these

d.Marketing

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5. Question

a.Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation  of Assertion (A)

b.Assertion (A) is true but Reason (R) is False

c.Assertion (A) is False but Reason (R) is true

d.Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

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6. After the trade has been executed, the broker issues a Contract Note to the investor within

a.48 hours

b.12 hours

c.52 hours

d.24 hours

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7. NSE commenced futures trading in the year:

a.1999

b.2001

c.2002

d.2000

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8. Which of the following statements is not true regarding the money market?

a.It is situated at specific locations

b.It inolves low market risks

c.Deals in unsecured and short term debt instruments

d.Instruments traded are highly liquid

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9. _________ is the organisations, institutions that provide long term funds.

a.Capital Market

b.Primary market

c.Money Market

d.Secondary Maket

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10. The settlement cycle in NSE is

a.T+3

b.T+5

c.T+1

d.T+2

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11. Clearing and settlement operations of NSE are carried out by:

a.CDSL

b.NSCCL

c.NSDL

d.SBI

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12. Which of the following are the instruments of money market?

a.Certificate of deposits

b.All of the above

c.Call money

d.Trade bills

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13. Which of the following statements is not true with regard to Commercial paper?

a.Is a long-term unsecured promissory note with a fixed maturity period

b.It is sold at a discount and redeemed at par

c.Companies use this instrument for bridge financing

d. It usually has a maturity period of 15 days to one year

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14. The total number of Stock Exchanges in India is:

a.23

b.22

c.21

d.20

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15. What is meant by Demat Account?

a.Development Market Account

b.Dematerialisation of Securities

c.Demand Depository Account

d.Depository Participant Account

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16. When securities are allotted to institutional investors & some selected individuals are referred to as _________.

a.Initial pubic offer

b.Private placement

c.offer for sale

d.Offer through prospectus

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17. Which of the following is not a financial market function ?

a.Price determination of securities

b.Lowering transaction cost

c.Mobilisation of savings

d.Floating of companies

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18. ___________ is also called zero coupon bond.

a.Call money

b.Commercial papers

c.Treasury bills

d.Trade bills

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19. Which of the following is the function of the financial market?

a.Mobilization of savings

b.Provide liquidity to financial asssets

c.All of the above

d.Price fixation

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20. Which of the following claims is correct about the financial market ?

a.They serve as a link between households that save money and business that invest it

b. They invest the money they have available in their most profitable investment option

c.They act as a link between savers and investors by facilitating transfer of funds.

d.All of these

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In summary, it is important to study Class 12 Business Studies Chapter 10 – Financial Markets MCQ Question Answers for CUET 2026, as it enhances one’s understanding of management and boosts overall exam scoring. Students can improve their knowledge and confidence by practicing the prepared MCQs on SuccessCDs.net. Frequent engagement with these problems is pivotal for nurturing positive results on the CUET 2026 exam. Also, these questions form a basic premise in Business Studies.

Also See :

Nature and Significance of Management MCQs Class 12 Chapter 1

Principles of Management MCQs Class 12 Chapter 2

Business Environment MCQs Class 12 Chapter 3

Planning MCQs Class 12 Chapter 4

Organising MCQs Class 12 Chapter 5

Staffing MCQs Class 12 Chapter 6

Directing MCQs Class 12 Chapter 7

Controlling MCQs Class 12 Chapter 8

Financial Management MCQs Class 12 Chapter 9

Marketing Management MCQs Class 12 Chapter 11

Consumer Protection MCQs Class 12 Chapter 12