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Business Studies · 2025 · 3 marks
CBSE 2025 · Region 2 · Set 2 · Q23
(a) Give the meaning of 'Money Market. Differentiate between Capital Market' and 'Money Market' on the basis of (i) Investment Outlay (ii) Duration
(a)
Give the meaning of 'Money Market. Differentiate
between Capital Market' and 'Money Market' on the basis
of
(i) Investment Outlay
(ii)
Duration
OR
(b)
State any three Development functions of Securities and
Exchange Board of India.
Marking-scheme solution
Money Market is a market for short term funds which
deals in monetary assets whose period of maturity is upto one
year.
Difference between Capital Market and Money Market
| Basis | Capital Market | Money Market | |
| (i) | Investment outlay | Investment in capital market i.e. securities does not necessarily require a huge financial outlay. The value of units of securities is generally low. | Transactions entail huge sums of money as the instruments are quite expensive. |
| (ii) | Duration | The Capital Market deals in medium and long term securities such as equity shares and debentures. OR | Money market instruments have a maximum tenure of one year and may even be issued for a single day. |
Development functions of Securities and Exchange Board
of India:
(a)
Training of intermediaries of the securities market.
(b)
Conducting research and publishing information useful to
all market participants.
(c)
Undertaking measures to develop the capital markets by
adopting a flexible approach.
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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.