Business Studies

Financial Markets

Easy

A certain degree of __________ speculation is necessary to ensure liquidity and price continuity in the stock market.

Healthy

Increasing

Upward

Extra

✅ Correct Option: 1

A stock exchange permits healthy speculation, which ensures liquidity and price continuity by keeping buyers and sellers active in the market. Excessive or reckless speculation is discouraged, but a certain degree of healthy speculation is considered necessary. Hence option 1.

2022: 16 July Shift 2

Match the items of List I with the correct items of List II

List I	List II
A. Treasury Bill	I. Companies use it for bridge financing
B. Commercial Paper	II. Used for inter bank transactions
C. Call money	III. Issued by RBI on behalf of Central government
D. Commercial Bill	IV. It is a bill of exchange used to finance the working capital requirement of business

Choose the correct answer from the options given below :

2024

Identify the method of floatation in Primary Market wherein a company sells securities enbloc at an agreed price to a broker.

2026: 13 May Shift 2

The following is not an important function of the Financial Market:

2022: 30 Aug Shift 1

Which one of the following is NOT the function of Financial Market ?

2026: 29 May Shift 1

Which of the following is NOT true about "Primary Market"?

2026: 11 May Shift 1

Match the LIST-I with LIST-II

LIST-I (Money Market Instrument)	LIST-II (Associated keywords)
A. Call Money	I. Unsecured, negotiable, short-term instruments in bearer form issued by commercial banks.
B. Certificate of deposit	II. Short term borrowing by Govt. of India
C. Treasury Bill	III. Unsecured promissory note, negotiable and transferable by endorsement issued by large creditworthy companies.
D. Commercial Paper	IV. Short term finance repayable on demand used for inter-bank transactions.

Choose the correct answer from the options given below:

A certain degree of __________ speculation is necessary to ensure liquidity and price continuity in the stock market.

Solution

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