Maharashtra State BoardHSC Commerce 12th Board Exam
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Balbharati solutions for Secretarial Practice 12th Standard HSC Maharashtra State Board chapter 11 - Financial Market [Latest edition]

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Secretarial Practice 12th Standard HSC Maharashtra State Board - Shaalaa.com

Chapter 11: Financial Market

Exercise
Exercise [Pages 167 - 169]

Balbharati solutions for Secretarial Practice 12th Standard HSC Maharashtra State Board Chapter 11 Financial Market Exercise [Pages 167 - 169]

Exercise | Q 1 A) 1. | Page 167

Select the correct answer from the options given below and rewrite the statement.
A financial market is a market in which people trade _____________ and derivatives at low transaction costs.

  • Gold

  • Financial securities

  • Commodities

Exercise | Q 1 A) 2. | Page 167

Select the correct answer from the options given below and rewrite the statement.
When the trade bills are accepted by commercial banks it is known as _________.

  • Treasury bills

  • Commercial bills

  • Commercial papers

Exercise | Q 1 A) 3. | Page 167

Select the correct answer from the options given below and rewrite the statement.
Money market is a market for lending and borrowing of funds for _________ term.

  • short

  • medium

  • long

Exercise | Q 1 A) 4. | Page 167

Select the correct answer from the options given below and rewrite the statement.
Central Government is a borrower in the money market through the issue of ____________.

  • commercial papers

  • trade bills

  • treasury bills

Exercise | Q 1 A) 5. | Page 167

Select the correct answer from the options given below and rewrite the statement.
____________ is the market for borrowing and lending long term capital required by business enterprises.

  • Money Market

  • Capital Market

  • Gold Market

Exercise | Q 1 B) | Page 167

Match the pair.

Group ‘A’ Group ‘B’
a) Financial market 1) Long term fund
b) Money market 2) New issue market
c) Primary market 3) Trading of commodities
d) Commercial paper 4) Short term fund
  5) Trading of financial securities
  6) Share market
  7) Unsecured promissory note
  8) Secured promissory note
Exercise | Q 1 C) 1. | Page 167

Write a word or a term or a phrase which can substitute the following statement.
A market where people trade financial securities and derivatives at low transaction cost

Exercise | Q 1 C) 2. | Page 167

Write a word or a term or a phrase which can substitute the following statement.
A market which provides long term funds

Exercise | Q 1 C) 3. | Page 167

Write a word or a term or a phrase which can substitute the following statement.
A market which provides short term funds

Exercise | Q 1 C) 4. | Page 167

Write a word or a term or a phrase which can substitute the following statement.
A money market instrument used by banks when one bank faces a temporary shortage of cash.

Exercise | Q 1 C) 5. | Page 167

Write a word or a term or a phrase which can substitute the following statement.
A bill which is issued by Reserve Bank of India on behalf of the Government of India.

Exercise | Q 1 C) 6. | Page 167

Write a word or a term or a phrase which can substitute the following statement.
A market which exclusively deals with the new issue of securities

Exercise | Q 1 D) 1. | Page 167

State whether the following statement is true or false
A Financial Market is a market in which people trade financial securities and derivatives at high transaction costs.

  • True

  • False

Exercise | Q 1 D) 2. | Page 167

State whether the following statement is true or false
Money market is the market for the long term funds

  • True

  • False

Exercise | Q 1 D) 3. | Page 168

State whether the following statement is true or false
Capital market is the market for the long term funds.

  • True

  • False

Exercise | Q 1 D) 4. | Page 168

State whether the following statement is true or false
Primary market is also known as new issue market.

  • True

  • False

Exercise | Q 1 D) 5. | Page 168

State whether the following statement is true or false
Secondary market is commonly known as stock market.

  • True

  • False

Exercise | Q 1 D) 6. | Page 168

State whether the following statement is true or false
Commercial paper is a secured promissory note.

  • True

  • False

Exercise | Q 1 D) 7. | Page 168

State whether the following statement is true or false
Treasury bills are issued by commercial banks.

  • True

  • False

Exercise | Q 1 E) 1. | Page 168

Find the odd one.

  • Treasury Bills

  • Shares

  • Certificate of Deposit.

Exercise | Q 1 E) 2. | Page 168

Find the odd one.

  • FPO

  • Private Placement

  • Commercial paper

Exercise | Q 1 E) 3. | Page 168

Find the odd one.

  • New Issues Market

  • Call Money Market

  • Secondary Market.

Exercise | Q 1 F) 1. | Page 168

Complete the sentence.
Funds borrowed and lent in money market are for ___________ term.

Exercise | Q 1 F) 2. | Page 168

Complete the sentence.
When trade bills are accepted by commercial banks, it is known as _________.

Exercise | Q 1 F) 3. | Page 168

Complete the sentence.
Unsecured negotiable promissory notes issued by a commercial bank is called as _______.

Exercise | Q 1 F) 4. | Page 168

Complete the sentence.
New shares, debentures, etc. are traded in ____________ market.

Exercise | Q 1 F) 5. | Page 168

Complete the sentence.
In capital market the instruments traded have maturity period of more than ______ year.

Exercise | Q 1 G) | Page 168

Select the correct option from the bracket.

Group ‘A’  Group ‘B’
a) Money market 1) ____________
b) Zero risk instrument 2) _____________
c) __________ 3) Capital market
d) __________ 4) Secondary market

(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)

Exercise | Q 1 H) 1. | Page 168

Answer in one sentence.
What is financial market

Exercise | Q 1 H) 2. | Page 168

Answer in one sentence.
What is call money market?

Exercise | Q 1 H) 3. | Page 168

Answer in one sentence.
What is Certificate of Deposits?

Exercise | Q 1 H) 4. | Page 168

Answer in one sentence.
What is Trade Bill?

Exercise | Q 1 H) 5. | Page 168

Answer in one sentence.
What is new issue market?

Exercise | Q 1 I) 1. | Page 168

Correct the underlined word/s and rewrite the following sentence.
In Primary market, already existing securities are traded.

Exercise | Q 1 I) 2. | Page 168

Correct the underlined word/s and rewrite the following sentence.
Companies sell fresh shares for the first time to the public in secondary market.

Exercise | Q 1 I) 3. | Page 168

Correct the underlined word/s and rewrite the following sentence.
In Money market, the instruments traded have maturity period of more than one year.

Exercise | Q 1 I) 4. | Page 168

Correct the underlined word/s and rewrite the following sentence.
Financial market can be classified as capital market and call money market.

Exercise | Q 2.1 | Page 168

Explain the following term/concept.
Financial market

Exercise | Q 2.2 | Page 168

Explain the following term/concept.
Capital market

Exercise | Q 2.3 | Page 168

Explain the following term/concept.
Money market

Exercise | Q 2.4 | Page 168

Explain the following term/concept.
Call money market

Exercise | Q 2.5 | Page 169

Explain the following term/concept.
Treasury bills

Exercise | Q 2.6 | Page 169

Explain the following term/concept.
Commercial bills

Exercise | Q 2.7 | Page 169

Explain the following term/concept.
Repurchase agreement

Exercise | Q 2.8 | Page 169

Explain the following term/concept.
Primary market

Exercise | Q 2.9 | Page 169

Explain the following term/concept.
Secondary market

Exercise | Q 3.1 | Page 169

Study the following case/situation and express your opinion.
Joy ltd. company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares.

  1. Should it go to the primary market or secondary market to issue its shares?
  2. Should it offer its shares through public offer or rights issue?
  3. What will be the issue of Equity shares by Joy Ltd. co. called as, IPO or FPO?
Exercise | Q 3.2 | Page 169

Study the following case/situation and express your opinion.
Mr. X is the CFO ( Chief Financial Officer ) of PQR Co. Ltd. which is a reputed company in the field of construction business. Often Mr. X has to decide on investing surplus funds of the company for short durations. And at times, he also has to decide the sources from where he can raise funds for short durations.

  1. Assume on behalf of the company Mr. X has Rs. 5 lakhs and wants to invest for a short period. Should he buy Equity shares or Certificate of Deposit?
  2. The company has surplus funds and wants to invest it. However, he needs the money back in 4 months, so should he invest in Treasury Bills or Government Securities?
  3. Can the company issue Certificate of Deposit?
Exercise | Q 4.1 | Page 169

Distinguish between the following.
Primary market and Secondary market.

Exercise | Q 4.2 | Page 169

Distinguish between the following.
Money market and Capital market

Exercise | Q 5.1 | Page 169

Answer in brief.
State any four functions of financial market

Exercise | Q 5.2 | Page 169

Answer in brief.
State any four features of money market

Exercise | Q 5.3 | Page 169

Answer in brief.
State any four features of capital market

Exercise | Q 5.4 | Page 169

Answer in brief.
Explain any 4 types of money market instruments.

Exercise | Q 6.1 | Page 169

Justify the following statement.
Financial markets acts as link between investor and borrower.

Exercise | Q 6.2 | Page 169

Justify the following statement.
Money market makes available short term finance through different instruments.

Exercise | Q 6.3 | Page 169

Justify the following statement.
Capital market is useful for corporate sector.

Exercise | Q 6.4 | Page 169

Justify the following statement.
There are many participants in money market.

Exercise | Q 7.1 | Page 169

Answer the following question
Explain the functions of financial market.

Exercise | Q 7.2 | Page 169

Answer the following question
State the instruments in money market.

Exercise | Q 7.3 | Page 169

Answer the following question
State the features of capital market.

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Chapter 11: Financial Market

Exercise
Secretarial Practice 12th Standard HSC Maharashtra State Board - Shaalaa.com

Balbharati solutions for Secretarial Practice 12th Standard HSC Maharashtra State Board chapter 11 - Financial Market

Balbharati solutions for Secretarial Practice 12th Standard HSC Maharashtra State Board chapter 11 (Financial Market) include all questions with solution and detail explanation. This will clear students doubts about any question and improve application skills while preparing for board exams. The detailed, step-by-step solutions will help you understand the concepts better and clear your confusions, if any. Shaalaa.com has the Maharashtra State Board Secretarial Practice 12th Standard HSC Maharashtra State Board solutions in a manner that help students grasp basic concepts better and faster.

Further, we at Shaalaa.com provide such solutions so that students can prepare for written exams. Balbharati textbook solutions can be a core help for self-study and acts as a perfect self-help guidance for students.

Concepts covered in Secretarial Practice 12th Standard HSC Maharashtra State Board chapter 11 Financial Market are Concept of Financial Markets, Functions of Financial Market, Types of Financial Market, Money Market, Secondary Market.

Using Balbharati 12th Board Exam solutions Financial Market exercise by students are an easy way to prepare for the exams, as they involve solutions arranged chapter-wise also page wise. The questions involved in Balbharati Solutions are important questions that can be asked in the final exam. Maximum students of Maharashtra State Board 12th Board Exam prefer Balbharati Textbook Solutions to score more in exam.

Get the free view of chapter 11 Financial Market 12th Board Exam extra questions for Secretarial Practice 12th Standard HSC Maharashtra State Board and can use Shaalaa.com to keep it handy for your exam preparation

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