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Read the following… (Class 12 Business Studies 2026, Q20)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/5/1 · 1 mark · Assertion-reason

CBSE Class 12 Business Studies 2026: question 20

Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section A, question 20, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q20 · 1 mark · Assertion-reasonCompetency-basedFinancial Markets

Read the following statements : Assertion (A) and Reason (R).

Assertion (A) : The investing public gets a safe and fair deal on the stock market.

Reason (R) : The membership of stock exchange is well regulated and its dealings are well defined according to the existing legal framework.

Choose the correct alternative from the following :

  1. (A)Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).
  2. (B)Both Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).
  3. (C)Both Assertion (A) and Reason (R) are incorrect.
  4. (D)Assertion (A) is correct, but Reason (R) is incorrect.

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

Which function of a stock exchange is this?

Hint 2

Safety of transactions comes from regulation.

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. Assertion: Correct. The investing public gets a safe and fair deal on the stock market.

    Reason: Correct. Membership is well regulated and dealings follow the legal framework.

  2. It is because of the regulated membership and legal framework that investors get a safe and fair deal, so R explains A. Option (A).

    1 mark

Answer: (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A).

Where the marks are

  • Truth of A and R and the link between them (1 mark)

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 66/5/1: 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.