CUET Business Studies: Business StudiesFinancial Markets. Free, no login required.

Q1:

2026: 23 May Shift 1

Financial Markets

Easy

Which of the following explains the meaning of Treasury Bills?

Answer options
Option 2
Correct Answer
Explanation for 2026: 23 May Shift 1 BST question 1

Q2:

2026: 23 May Shift 1

Financial Markets

Easy

Which of the following is NOT the participant in the Money Market?

Answer options
Option 3
Correct Answer
Explanation for 2026: 23 May Shift 1 BST question 2

Q3:

2026: 23 May Shift 1

Financial Markets

Medium

Select the correct order of trading and settlement procedure on the stock exchange.

A. Signing a broker - client agreement

B. Open a DEMAT Account

C. Placing an order with a broker to buy or sell shares.

D. Broker will go online to match share and best price available.

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2026: 23 May Shift 1 BST question 3

Q4:

2026: 23 May Shift 1

Financial Markets

Easy

Which of the followings is not an objective of SEBI?

Answer options
Option 4
Correct Answer
Explanation for 2026: 23 May Shift 1 BST question 4

Q5:

2026: 21 May Shift 2

Financial Markets

Medium

The regulatory function of SEBI is:

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 5

Q6:

2026: 21 May Shift 2

Financial Markets

Medium

Match the LIST-I with LIST-II

LIST-I (Money Market Instrument)LIST-II (Features)
A. Certificate of DepositI. Bill of Exchange used to finance the working capital requirements of business firms.
B. Commercial PaperII. Short term unsecured, negotiable instruments issued by Commercial Banks and Development Finance Institutions.
C. Commercial BillIII. Short term finance repayable on demand, used for inter bank transactions
D. Call MoneyIV. Short term, unsecured promissory note, negotiable and transferable by endorsement, used for bridge financing.

Choose the correct answer from the options given below:

Answer options
Option 1
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 6

Q7:

2026: 21 May Shift 2

Financial Markets

Medium

It is mandatory to settle all stock market trades as per settlement cycle on ______________ on a rolling settlement basis.

Answer options
Option 2
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 7

Q8:

2026: 21 May Shift 2

Financial Markets

Easy

The following is not a method of floating new issues in the primary market:

Answer options
Option 1
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 8

Q9:

2026: 21 May Shift 2

Financial Markets

Medium

The short term instrument issued by the Reserve Bank of India is:

Answer options
Option 3
Correct Answer
Explanation for 2026: 21 May Shift 2 BST question 9

Q10:

2026: 21 May Shift 1

Financial Markets

Easy

_______________ is a mandatory document for opening DEMAT account.

Answer options

Q11:

2026: 21 May Shift 1

Financial Markets

Easy

In 1992 _______________ was incorporated to establish a nationwide trading facility for all types of securities.

Answer options

Q12:

2026: 21 May Shift 1

Financial Markets

Easy

Rukul is a regular investor in the stock market. He follows the settlement cycle of _________ on a rolling settlement basis.

Answer options

Q13:

2026: 21 May Shift 1

Financial Markets

Medium

"No fixed geographical location" is a distinctive feature of:

Answer options
Option 1,2
Correct Answer
Explanation for 2026: 21 May Shift 1 BST question 13

Q14:

2026: 21 May Shift 1

Financial Markets

Medium

Match List-I with List-II

List-I (Functions/objectives of SEBI)List-II (Explanation)
(A) Training of intermediaries(I) Objective of SEBI
(B) Controlling insider trading(II) Regulatory function
(C) Guide and educate individual investors(III) Development function
(D) Levying fee for carrying out the purposes of the act(IV) Protective function

Choose the correct answer from the options given below:

Answer options

Q15:

2026: 20 May Shift 1

Financial Markets

Medium

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.

Answer options

Q16:

2026: 20 May Shift 1

Financial Markets

Medium

Arrange the following in the correct order of the working of the Demat System.

(A) An account opening form and documentation (PAN card details, photograph, power of attorney) may be completed.

(B) If shares are applied in a public offer, simple details of DP and demat account are to be given and the shares on allotment would automatically be credited to the demat account.

(C) The physical certificate is to be given to the DP along with a dematerialization request form.

(D) A Depository Participant (DP), either a bank, broker, or financial services company, may be identified.

Choose the correct answer from the options given below:

Answer options

Q17:

2026: 20 May Shift 1

Financial Markets

Easy

Which of the following is not a function of Stock Exchange?

Answer options

Q18:

2026: 20 May Shift 1

Financial Markets

Medium

It has been made compulsory to settle all trades within 2 days of the trade, i.e. on a T+2 basis, since 2003. Prior to the reforms, the securities were traded and all positions in the stock market were settled on a _______ settlement cycle whether it was delivery of securities or payment of cash

Answer options

Q19:

2026: 20 May Shift 1

Financial Markets

Medium

"Yuvaan Ltd.", a reputed industrial machines manufacturer, needs twenty crores as additional capital to expand the business. Mr. Karan Rastogi, the Chief Executive Officer (CEO) of the company wants to raise funds through equity. The Finance Manager, Mr. Lokesh Nayyar, suggested that the shares may be sold to investing public through intermediaries, as the same will be less expensive. Name the method through which the company decided to raise additional capital.

Answer options

Q20:

2026: 13 May Shift 2

Financial Markets

Easy

________ is the allotment of securities by a company to institutional investors and selected individuals.

Answer options

Q21:

2026: 13 May Shift 2

Financial Markets

Easy

The steps followed in the screen-based trading for buying and selling of securities are:

(A) The investor has to open a demat account with a depository participant for holding and transferring securities in demat form.

(B) The investor places an order with the broker to buy or sell shares.

(C) The broker goes online and connects to the main stock exchange and matches shares and the best price available.

(D) The broker issues a contract note within 24 hours after the trade has been executed.

Choose the correct answer from the options given below:

Answer options

Q22:

2026: 13 May Shift 2

Financial Markets

Easy

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

Answer options

Q23:

2026: 13 May Shift 2

Financial Markets

Easy

Since 2003, it has been made compulsory to settle all stock market trade on a rolling settlement basis within:

Answer options

Q24:

2026: 13 May Shift 2

Financial Markets

Medium

The following is the Protective Function of SEBI:

Answer options

Q25:

2026: 13 May Shift 1

Financial Markets

Easy

The government and the stock exchange were rather helpless in addressing the investors' problems because of the lack of proper penal provisions in the existing legislation, so it was decided to set up a regulatory body known as:

Answer options

Q26:

2026: 13 May Shift 1

Financial Markets

Medium

Rohit wanted to buy 200 shares of a tech company. He contacted a stock exchange broker to buy the said shares. The broker opened his DEMAT account and placed an order to buy shares. He then went online to connect to the main stock exchange and matched the shares and the best price available. When the shares can be bought at the mentioned price, it will be communicated to the brokers terminal and the order will be executed electronically. The next step involved in the trading and settlement procedure would be:

Answer options
Option 2,3
Correct Answer
Explanation for 2026: 13 May Shift 1 BST question 26

Q27:

2026: 13 May Shift 1

Financial Markets

Easy

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

Answer options

Q28:

2026: 13 May Shift 1

Financial Markets

Medium

Match List-I with List-II:

List-I (Explanation)List-II (Function/Objective of SEBI)
(A) Training of intermediaries of the securities market.(I) Development function
(B) Audits of stock exchanges.(II) Regulatory function
(C) To regulate the securities industry to promote its orderly functioning.(III) Protective function
(D) Imposing penalties for insider trading.(IV) Objective of SEBI

Choose the correct answer from the options given below:

Answer options

Q29:

2026: 13 May Shift 1

Financial Markets

Easy

The following is not an advantage of the Electronic Trading System:

Answer options

Q30:

2026: 12 May Shift 1

Financial Markets

Medium

Arrange following activities/events of NSE in correct order of timeline

(A) Recognized as a stock exchange

(B) Started operations with trading on the wholesale debt market segment

(C) Started futures and options segment

(D) Launched capital market segment

Choose the correct answer from the options given below:

Answer options