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State any… (Class 12 Business Studies SQP 2023-24, Q24a)

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Business StudiesCBSE Class 12 · Sample paper, session 2023-24 · 3 marks · Short answer

CBSE Class 12 Business Studies sample paper 2023-24: question 24(a)

From the official CBSE sample question paper for 2023-24, section B, question 24(a), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q24(a) · 3 marks · Short answerFinancial Markets

State any three functions of Stock Exchange.

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

How does an exchange help an investor who wants to sell?

Hint 2

Who decides share prices?

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. Provides liquidity and marketability: It offers a continuous market where existing securities can be bought and sold, so investors can invest and disinvest.

    1 mark

  2. Pricing of securities: Prices are determined by demand and supply, giving constant valuation.

    1 mark

  3. Safety of transactions: Membership is well regulated under the legal framework, ensuring safe and fair deals. (Also: contributes to economic growth, spreads equity cult, scope for controlled speculation.)

    1 mark

Answer: Liquidity and marketability, pricing of securities and safety of transactions (also economic growth, equity cult, speculation).

Where the marks are

  • Any three functions: 1 mark each

Revise the chapter

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.