Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Match List I with List II.

List I List II
(A) Dematerialisation (I) A trading platform for fixed income securities
(B) Stock Exchange (II) The process of holding securities in an electronic form
(C) Wholesale debt market (III) Intermediary between investor and depository
(D) Depository participant (IV) Spreading of equity cult

Choose the correct answer from the options given below :

Options:

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

(A)-(II), (B)-(I), (C)-(III), (D)-(IV)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

(A)-(IV), (B)-(I), (C)-(III), (D)-(II)

Correct Answer:

(A)-(II), (B)-(IV), (C)-(I), (D)-(III)

Explanation:

The correct answer is option (1)- (A)-(II), (B)-(IV), (C)-(I), (D)-(III).

 

List I List II
(A) Dematerialisation (II) The process of holding securities in an electronic form
(B) Stock Exchange (IV) Spreading of equity cult
(C) Wholesale debt market (I) A trading platform for fixed income securities
(D) Depository participant (III) Intermediary between investor and depository

 

 

Dematerialization is the process of converting physical share certificates into electronic form. This allows securities to be held in electronic accounts (demat accounts), which makes trading, transfer, and settlement of securities faster and more secure.

The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.

Wholesale Debt Market is a platform for trading fixed income securities such as government bonds, corporate bonds, and other debt instruments in large denominations. It provides a venue for institutional investors and large corporations to buy and sell debt securities.

A depository participant is an intermediary between the depository and the investor. They facilitate the opening of demat accounts, provide services related to the dematerialization of securities, and offer other depository -related services to investors.