Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Match List I with List II

List I List II
A. Primary Market I. Stock Exchange
B. Secondary Market II. Treasury Bill
C. Maturity Period of 15 days to one year III. New Issue Market
D. Available for minimum amount of ₹25000 IV. Commercial Paper

Choose the correct answer fro the options given below :

Options:

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

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

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

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

Correct Answer:

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

Explanation:

The correct answer is option (4) : A-III, B-I, C-IV, D-II

A. Primary Market: The primary market refers to the market where newly issued securities are traded. It is the market where companies sell new stocks and bonds to investors directly. In the primary market, businesses raise capital by issuing new securities to investors in exchange for cash.

B. Maturity Period of 15 days to one year: This refers to the period of time for which certain financial instruments, such as bonds or commercial paper, are issued and subsequently mature. Instruments with a maturity period of 15 days to one year are short-term financial instruments commonly used by businesses and governments to manage their short-term financing needs.

C. Secondary Market: The secondary market is the financial market where investors buy and sell securities they already own. It is distinct from the primary market, where securities are initially created. The secondary market provides liquidity to investors, allowing them to sell their securities to other investors in order to access their funds or make new investments.

D. Available for a minimum amount of ₹25000: This refers to the minimum investment amount required for certain financial instruments. A minimum amount of ₹25000 indicates the smallest sum of money an investor must put in to participate in the investment opportunity.