Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Identify Which of the following statements are correct.

A. The stock exchange provides sufficient scope within the provisions of law for speculative activity in controlled manner

B. Primary market has no fixed geographical location

C. Investment in the capital market necessarily require a huge financial outlay

D. Call rate is highly volatile rate, which is inversely related with other short term money market instruments

E. Treasury bills are also known as Zero coupon Bonds issued by RBI on behalf of the Central Government.

Choose the correct answer from the options given below :

Options:

A, B, C and D only

A, B, D and E only

A, C, D and E only

A, B, C and E only

Correct Answer:

A, B, D and E only

Explanation:

The correct answer is option (2) : A, B, D and E only

Statement A is correct as the stock exchange provides a platform for speculative activity within the provisions of law.

Statement B is correct as the primary market has no fixed geographical location and can be accessed through various channels such as online platforms, brokers, etc.

Statement C is incorrect as investment in the capital market does not necessarily require a huge financial outlay. One can start investing with small amounts and gradually increase their investment.

Statement D is correct as call rate is a highly volatile rate that is inversely related to other short-term money market instruments.

Statement E is correct as treasury bills are also known as zero-coupon bonds issued by RBI on behalf of the central government.

Therefore, the correct answer is option 2 : A, B, D and E only.