Business Studies

Financial Markets

Easy

Which of the following is not the function of financial markets:

Mobilisation of savings and channeling them into the most productive uses

Reducing the cost of transactions

Facilitating price discovery

Promotion of fair practices in securities market

✅ Correct Option: 4

The functions of financial markets are mobilisation of savings into productive uses, facilitating price discovery, providing liquidity to financial assets, and reducing the cost of transactions. Promotion of fair practices in the securities market is a protective function of SEBI, not of financial markets. Hence option 4.

2026: 6 June Shift 1

________ enhances the encashability of shares by promoting capital formation indirectly.

2026: 20 May Shift 1

An investor wanted to invest Rs. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose, he came to know it was not possible.

Identify the reason why the investor could not invest in the Treasury Bill.

2022: 6 Oct Shift 1

Capital market consists of

A. Development Bank

B. Financial Institutions

C. Stock Exchange

D. Treasury Bills

E. Call Money

Choose the correct answer from the option given below:

2026: 24 May Shift 1

Match List-I with List-II

List-I (Keywords)	List-II (Financial market concepts)
(A) Keeps securities in electronic form on behalf of investors	(I) National Stock Exchange (NSE)
(B) Provides protection to the investors and encourages competitiveness in the financial environment	(II) Bombay Stock Exchange (BSE)
(C) Established a nationwide trading facility for all types of securities	(III) Central Depository Services Limited (CDSL)
(D) Asia's first stock exchange	(IV) Securities and Exchange Board of India (SEBI)

Choose the correct answer from the options given below:

2026: 21 May Shift 1

_______________ is a mandatory document for opening DEMAT account.

2022: 6 Oct Shift 1

SEBI is an interim administrative body to promote orderly and healthy growth of securities market

Find out the correct statements about SEBI

A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market

B. The act of Parliament that governs SEBI is SEBI Act, 1994

C. The basic purpose of SEBI is to form new enterprises

D. SEBI doesn't protect the rights and interest of investors

E. SEBI is a separate regulatory body

Choose the correct answer from the option given below:

Which of the following is not the function of financial markets:

Solution

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