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Match the… (Class 12 Business Studies SQP 2026-27, Q7)

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Business StudiesCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2026-27: question 7

From the official CBSE sample question paper for 2026-27, section A, question 7, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q7 · 1 mark · MCQFinancial Markets

Match the terms given in column 1 with their meaning given in column2:

Column1Column2
1. Financial Intermediation(i) Facilities and institutional arrangements through which long term funds both equity and debt are raised and invested
2. Primary market(ii) the process by which allocation of funds is done
3. Capital market(iii) market for creation and exchange of financial assets
4. Financial market(iv) Securities are sold by the company to the investor directly (or through an intermediary).

Choose the correct option from the following

  1. (A)1 (i), 2 (ii), 3 (iii), 4 (iv)
  2. (B)1 (ii), 2 (iv), 3 (i), 4 (iii)
  3. (C)1 (ii), 2 (iii), 3 (i), 4 (iv)
  4. (D)1 (iv), 2 (ii), 3 (i), 4 (iii)

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Start with the easiest match: where are new securities sold?

Hint 2

Long-term funds belong to which market?

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. Financial intermediation is the process of allocating funds (ii); the primary market is where a company sells new securities to investors directly or through an intermediary (iv).

  2. The capital market is the arrangement for raising and investing long-term funds, equity and debt (i); a financial market is a market for creating and exchanging financial assets (iii). Option (B).

    1 mark

Answer: (B) 1 (ii), 2 (iv), 3 (i), 4 (iii)

Where the marks are

  • Matching definitions of financial market terms (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 2026-27: 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.