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Choose the… (Class 12 Business Studies SQP 2025-26, Q11)

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Business StudiesCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2025-26: question 11

From the official CBSE sample question paper for 2025-26, section A, question 11, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q11 · 1 mark · MCQFinancial Markets

Choose the correct statement about the meaning of depository.

  1. (A)Depository holds and transfers securities in the Demat Form.
  2. (B)Depository serves as an intermediary and buys and sells securities on the instructions of clients.
  3. (C)Depository is like a bank and keeps securities in electronic form on behalf of investors.
  4. (D)Depository buys securities from a company and sells to the public at a higher price.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Which option describes a broker instead?

Hint 2

A bank keeps money; a depository keeps ____.

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. A depository does not buy or sell securities (that is a broker or underwriter). It is an institution that holds securities electronically for investors.

  2. The textbook description: a depository is like a bank and keeps securities in electronic form on behalf of investors. Option (C).

    1 mark

Answer: (C) Depository is like a bank and keeps securities in electronic form on behalf of investors.

Where the marks are

  • Meaning of depository (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 2025-26: 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.