Match the LIST-I with LIST-II
| LIST-I | LIST-II |
| (Terms related to Financial Markets) | (Key words) |
| A. Primary Market | I. Short Term Fund Market |
| B. SEBI | II. Securities Market Regulator |
| C. Money Market | III. New Issue market |
| D. NSE | IV. Nationwide Trading Facility Establishment |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → A-III, B-II, C-I, D-IV
(A) Primary Market — this matches (III) New Issue market. The primary market deals with securities issued for the first time. A company sells new shares or debentures here, and the money goes to the company itself. That is why it is also called the new issue market.
(B) SEBI — this matches (II) Securities Market Regulator. The Securities and Exchange Board of India was given statutory powers in 1992. Its job is to regulate the securities market, protect the interest of investors and help the market develop.
(C) Money Market — this matches (I) Short Term Fund Market. The money market deals in funds borrowed and lent for up to one year, through instruments such as treasury bills, commercial paper and call money. Long-term funds belong to the capital market.
(D) NSE — this matches (IV) Nationwide Trading Facility Establishment. The National Stock Exchange was set up to let investors from every part of the country trade through one computer network. Setting up this nationwide trading facility was its first objective.
Note: 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. This chapter left the book, not the paper. A quick read of these few pages is enough to pick up the marks. NCERT (Pre-rationalised Edition): “PRIMARY MARKET The primary market is also known as the new issues market. It deals with new securities being issued for the first time. …” “Objectives of SEBI The overall objective of SEBI is to protect the interests of investors and to promote the development of, and regulate the securities market. …” “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. …” “OBJECTIVES OF NSE NSE was set up with the following objectives: a. Establishing a nationwide trading facility for all types of securities.” |