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Business Studies · 2023 · 3 marks
CBSE 2023 · Region 3 · Set 1 · Q24
Distinguish between 'Capital market' and Money market’ on the basis of: (i) Participants (ii) Investment outlay (iii) Safety
Distinguish between 'Capital market' and
Money market’ on the basis of:
(i)
Participants
(ii)
Investment outlay
(iii)
Safety
OR
(b)
State any three regulatory functions of the
Securities and Exchange Board of India.
Marking-scheme solution
Distinction between 'Capital market' and ‘Money
market’:
| Basis | Capital market | Money market |
| Participants | The participants in capital market are financial institutions, banks, corporate entities, foreign investors and retail investors. | The money market participants are institutions like RBI, banks, financial institutions and finance companies. |
| Investment outlay | Investment in capital market does not require huge financial outlays as value of securities is low. | Money market transactions entail huge sums of money as the instruments are quite expensive. |
| Safety | Capital market instruments are riskier, both with | Money market is much safer due to shorter duration of |
| respect to returns and principal repayment. | investing and financial soundness of the issuers. |
State any three regulatory functions of the
Securities and Exchange Board of India.
Regulatory functions of SEBI :
(i)
Registration of brokers and sub-brokers and other
players in the market.
(ii)
Registration of collective investment schemes and
mutual funds.
(iii)
Regulation of stock brokers, portfolio exchanges,
underwriters, etc.
(iv)
Regulation of takeover bids by companies.
(v)
Calling for information by undertaking inspection,
conducting enquiries and audits of the stock
exchanges and intermediaries.
(vi)
Levying fees or other charges for purposes of this
act.
(vii)
Performing and exercising such power under
Securities Contracts (Regulation) Act $\displaystyle 1956$, as may
be delegated by the Government of India.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.