Skip to content

STATEMENT I… (Class 12 Business Studies SQP 2023-24, Q16)

questionbuddy.in/q/cbse-12-business-studies-2023-24-sqp-q16-electronic-holdings-can-converted-physical

Business StudiesCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2023-24: question 16

From the official CBSE sample question paper for 2023-24, section A, question 16, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q16 · 1 mark · MCQFinancial Markets

STATEMENT I: Electronic holdings can be converted into physical certificates with the process of dematerialisation.
STATEMENT II: There is no danger of theft, loss or forgery of share certificates in dematerialisation.
Choose the correct option from the following:

  1. (A)Statement I is true and II is false
  2. (B)Statement II is true and I is false
  3. (C)Both the statements are true
  4. (D)Both the statements are false

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which way does dematerialisation convert?

Hint 2

Can an electronic holding be stolen like paper?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Statement I is false: converting electronic holdings into physical certificates is rematerialisation; dematerialisation converts physical certificates into electronic form.

  2. Statement II is true: demat holdings remove the danger of theft, loss or forgery of certificates. Option (B).

    1 mark

Answer: (B) Statement II is true and I is false

Where the marks are

  • Demat vs remat (1 mark)

Revise the chapter

  • Chapter: Financial Markets (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Financial Markets, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.