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Business Studies · 2025 · 3 marks
CBSE 2025 · Region 2 · Set 3 · Q23
(a) Differentiate between Capital Market' and 'Money Market on the basis of: (i) Liquidity (ii) Safety (iii) Expected Return
(a)
Differentiate between Capital Market' and
'Money Market on the basis of:
(i)
Liquidity
(ii)
Safety
(iii)
Expected Return
OR
(b)
State any three 'Protective functions of Securities
and Exchange Board of India.
Marking-scheme solution
Difference between Money Market and Capital Market
| Basis | Capital Market | Money Market |
| (i) Liquidity | Capital market securities are comparatively less liquid. | Money market securities are comparatively more liquid. |
| (ii) Safety | Capital market securities are riskier than money market instruments. | Money market securities are comparatively safer. |
| (iii) Expected | Capital market securities generally | Money market securities yield |
| return | yield a higher return than money market instruments. | comparatively less return. |
Protective functions of SEBI:
(i)
It prohibits fraudulent and unfair trade practices like
misleading statements, manipulations, price rigging etc.
(ii)
It controls insider trading and imposes penalties for
such practices.
(iii)
It undertakes steps for investor protection.
(iv)
It promotes fair practices and code of conduct in
securities market.
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.