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The purpose of… (Class 12 Business Studies 2026, Q16)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/5/1 · 1 mark · MCQ

CBSE Class 12 Business Studies 2026: question 16

Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section A, question 16, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q16 · 1 mark · MCQFinancial Markets

The purpose of opening a Demat Account with a Depository Participant (DP) is :

  1. (A)For holding and transferring securities in the Demat form
  2. (B)For entering into an agreement with broker
  3. (C)For making payment to stock exchange for any purchase of securities
  4. (D)For enabling cash transactions in the securities market

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/5/1.

Hints

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

Hint 1

A bank account holds money; what does a demat account hold?

Hint 2

Payments go through a bank account, not a demat account.

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 demat account holds securities in electronic (dematerialised) form.

  2. It is opened with a Depository Participant for holding and transferring securities in demat form. Option (A).

    1 mark

Answer: (A) For holding and transferring securities in the Demat form

Where the marks are

  • Demat account holds securities electronically (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 paper2026 board paper, set 66/5/1: 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.