“No fixed geographical location” is NOT a distinctive feature of:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Secondary market
Option (1) Money market — Has no fixed location (Incorrect). The money market is the market for short-term funds, lent and borrowed for up to one year. It has no physical place: deals are made over the telephone and the internet.
Option (2) New Issues market — Has no fixed location (Incorrect). This is another name for the primary market, so the same reason as Option (3) applies.
Option (3) Primary market — Has no fixed location (Incorrect). In the primary market, a company sells new securities to investors for the first time, directly or through intermediaries. Investors apply from anywhere, and no trading floor is needed.
Option (4) Secondary market — Located at a fixed place (Correct). In the secondary market, existing securities are bought and sold between investors on a stock exchange, and a stock exchange is located at a specified place.
Note 1: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. Note 2: In the original question, Option (1), Option (2) and Option (3) were all correct as per the NTA Answer Key. The paper printed the question as “No fixed geographical location” is a distinctive feature of: For the benefit of students and to ensure a single answer, the question has been changed to “No fixed geographical location” is NOT a distinctive feature of:
NCERT (Pre-rationalised Edition): “MONEY MARKET The money market is a market for short term funds which deals in monetary assets whose period of maturity is upto one year. These assets are close substitutes for money. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. It has no physical location, but is an activity conducted over the telephone and through the internet. …”
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