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Business Studies · 2026 · 3 marks
CBSE 2026 · Region 5 · Set 3 · Q24
(a) Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the following: (i) Participants (ii) Instruments (iii) Duration
(a)
Differentiate between ‘Capital Market’ and ‘Money Market’ on the
basis of the following :
(i)
Participants
(ii)
Instruments
(iii)
Duration
OR
(b)
State any three protective functions of Securities and Exchange
Board of India.
Marking-scheme solution
Differentiate between ‘Capital Market’ and ‘Money Market’
| Basis | Capital Market | Money Market |
| (i) Participants | The participants are financial institutions, banks, corporates, foreign investors and retail investors. | The participants are institutional participants such as the RBI, banks, financial institutions and finance companies. |
| (ii) Instruments | Instruments in the capital market are Equity shares, Debentures, Bonds, Preference shares, etc. | Instruments in the money market are short term debt instruments like Treasury Bill, call money, commercial paper, certificate of deposits. |
| (ii) Duration | It deals in medium term and long term securities. | It deals in short term securities. |
Q. (b) State any three protective functions of Securities and Exchange
Board of India.
Protective functions of Securities and Exchange Board of India:
(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 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.