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Business Studies · 2026 · 3 marks
CBSE 2026 · Region 5 · Set 1 · Q24
Differentiate between ‘Capital Market’ and ‘Money Market’ onthe basis of the following:(i)Investment Outlay(ii)Liquidity(iii)SafetyState any three development functions of Securities and ExchangeBoard of India.
Differentiate between ‘Capital Market’ and ‘Money Market’ on
the basis of the following:
(i)
Investment Outlay
(ii)
Liquidity
(iii)
Safety
State any three development functions of Securities and Exchange
Board of India.
Marking-scheme solution
Difference between ‘Capital Market’ and ‘Money Market’
| BASIS | CAPITAL MARKET | MONEY MARKET |
| (i) Investment Outlay | Investment in capital market does not necessarily require a huge financial outlay as the value of units of securities is generally low. | Investment in money market requires huge sums of money as the instruments are quite expensive. |
| (ii) Liquidity | Capital market securities are considered less liquid. | Money market instruments enjoy a higher degree of liquidity as there is a formal arrangement for it. |
| (iii) Safety | Capital market instruments are riskier both with respect to returns and principal repayment. | Money market instruments are generally much safer with minimum risk of default. |
Q.(b) State any three development functions of Securities and Exchange
Board of India.
Development Functions of Securities and Exchange Board of India
(i)
Training of intermediaries of the securities market.
(ii)
Conducting research and publishing information useful to all market
participants.
(iii)
Undertaking measures to develop the capital markets by adapting a
flexible approach.
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CBSE Class 12 Business Studies past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.