Practicing Success

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)

1. Dematerialisation: This is the process of converting physical share certificates into electronic form. It allows investors to hold and trade securities in a digital format, eliminating the need for paper certificates.

2. Stock Exchange: A stock exchange is a regulated marketplace where securities such as stocks, bonds, and derivatives are bought and sold. It provides a platform for companies to raise capital by issuing shares and for investors to trade securities.

3. Wholesale Debt Market: This 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.

4. Depository Participant : 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.