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Ria ran a small… (Class 12 Business Studies 2026, Q33)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/1/1 · 6 marks · Long answer

CBSE Class 12 Business Studies 2026: question 33

Set in the CBSE Class 12 board exam of 2026, paper 66/1/1, section D, question 33, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q33 · 6 marks · Long answerCompetency-basedFinancial Markets

Ria ran a small online bakery business. Her business was doing very well. She saved a good amount of money every month and now wanted to invest it wisely. She was in a dilemma to keep her savings in a bank account or to invest it in the stock market. Her friend Aabha, who had done a certification course from National Stock Exchange, encouraged her to invest in the stock market. She explained to Ria that if she invests in the stock market, she could disinvest and reinvest whenever she wanted, which would provide her good liquidity. Aabha also told her that the membership of stock exchange is well regulated and all trading takes place within the legal framework. As a result, investors get a fair and safe deal.

Ria was still apprehensive as she had heard that there is lot of speculation in the stock market. She wanted to be cautious. Aabha clarified that speculation does exist, but it happens in a restricted and controlled way. She also told Ria that the stock exchange is keen to promote wider share ownership and does so by educating public about investments etc. As a result, young people have started investing in the stock market. After all this discussion, Ria felt confident and decided to invest a part of her savings in the stock market.

Quoting lines, identify and explain the four functions of stock exchange highlighted in the above case.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/1/1.

Hints

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

Hint 1

Quote the line, then name the function.

Hint 2

Educating the public widens share ownership.

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. Providing liquidity and marketability: "...she could disinvest and reinvest whenever she wanted, which would provide her good liquidity." A continuous market lets investors buy and sell existing securities.

    1½ marks

  2. Safety of transactions: "...the membership of stock exchange is well regulated and all trading takes place within the legal framework." Investors get a safe and fair deal.

    1½ marks

  3. Providing scope for speculation: "...speculation does exist, but it happens in a restricted and controlled way." Speculative activity is allowed within the law.

    1½ marks

  4. Spreading of equity cult: "...the stock exchange is keen to promote wider share ownership and does so by educating public about investments." It widens share ownership.

    1½ marks

Answer: Liquidity and marketability; safety of transactions; scope for speculation; spreading of equity cult.

Where the marks are

  • Each function: ½ quoting + ½ identification + ½ explanation

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 paper2026 board paper, set 66/1/1: 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.