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Give any… (Class 12 Business Studies SQP 2025-26, Q23A)

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Business StudiesCBSE Class 12 · Sample paper, session 2025-26 · 3 marks · Short answer

CBSE Class 12 Business Studies sample paper 2025-26: question 23(A)

From the official CBSE sample question paper for 2025-26, section B, question 23(A), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q23(A) · 3 marks · Short answerFinancial Markets

Give any three points of distinction between the money market and capital market.

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

Who can invest in each market?

Hint 2

How long do the instruments last?

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. Participants: Capital market: financial institutions, banks, companies, foreign investors and retail investors. Money market: mainly institutions such as the RBI, banks and finance companies.

    1 mark

  2. Instruments: Capital market: equity shares, debentures, bonds, preference shares. Money market: short-term debt instruments such as T-bills, trade bills, commercial paper and certificates of deposit.

    1 mark

  3. Duration: Capital market: medium- and long-term securities. Money market: instruments with a maximum tenure of one year, even a single day. (Also: investment outlay, liquidity, safety, expected return.)

    1 mark

Answer: Capital and money markets differ in participants, instruments and duration (also investment outlay, liquidity, safety and expected return).

Where the marks are

  • Any three distinctions: 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 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.