CBSE Class 12 Business Studies Financial Market Worksheet Solved

Access the latest CBSE Class 12 Business Studies Financial Market Worksheet Solved. We have provided free printable Class 12 Business Studies worksheets in PDF format, specifically designed for Chapter 10 Financial Markets. These practice sets are prepared by expert teachers following the 2025-26 syllabus and exam patterns issued by CBSE, NCERT, and KVS.

Chapter 10 Financial Markets Business Studies Practice Worksheet for Class 12

Students should use these Class 12 Business Studies chapter-wise worksheets for daily practice to improve their conceptual understanding. This detailed test papers include important questions and solutions for Chapter 10 Financial Markets, to help you prepare for school tests and final examination. Regular practice of these Class 12 Business Studies questions will help improve your problem-solving speed and exam accuracy for the 2026 session.

Download Class 12 Business Studies Chapter 10 Financial Markets Worksheet PDF

 

FINANCIAL MARKETS
 
1 What is Financial Market?
Financial Market is a market for creation and exchange of financial assets.
 
2 ‘Financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions.’ Explain the functions of Financial Markets.
The important functions of Financial markets are:
1. Mobilization of Savings & channeling them into the most productive uses
2. Facilitate Price Discovery
3.Provide Liquidity to Financial assets
4. Reduce the cost of Transactions.
 
3 What is Money Market?
The money market is a market for short term funds which deals in monetary assets whose period of maturity is up to one year.
 
4 Explain the Money Market Instruments.
 
1. Treasury Bill: A Treasury bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. They are also known as Zero Coupon Bonds issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement of funds.
 
2. Commercial Paper: Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. It is issued by large and creditworthy companies to raise short-term funds at lower rates of interest than market rates. It usually has a maturity period of 15 days to one year.
 
3. Call Money: Call money is short term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions. Commercial banks have to maintain a minimum cash balance known as cash reserve ratio. Call money is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.
 
4. Certificate of Deposit: Certificates of deposit (CD) are unsecured, negotiable, short-term instruments in bearer form, issued by commercial banks and development financial institutions. They can be issued to individuals, corporations and companies during periods of tight liquidity.
 
5. Commercial Bill: A commercial bill is a bill of exchange used to finance the working capital requirements of business firms. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
 
5 What is Capital Market?
The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested.
The Capital Market can be divided into two parts: a. Primary Market b. Secondary Market.
 
6 State the differences between Capital Market and Money Market.

CBSE Class 12 Business Studies Financial Market Worksheet Solved 1

7 What is Primary Market?
The primary market is also known as the new issues market. It deals with new securities being issued for the first time.
 
8 What are the methods of floatation in Primary Market?
Methods of Floatation:
1. Offer through Prospectus: This involves inviting subscription from the public through issue of prospectus.
2. Offer for Sale: Under this method securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stock brokers.
3. Private Placement: Private placement is the allotment of securities by a company to institutional investors and some selected individuals.
4. Rights Issue: The shareholders are offered the ‘right’ to buy new shares in proportion to the number of shares they already possess.
5. e-IPOs: A company proposing to issue capital to the public through the on-line system of the stock exchange has to enter into an agreement with the stock exchange.
 
9 What is Secondary Market?
The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. Securities are traded, cleared and settled within the regulatory framework prescribed by SEBI.

 

Please click on below link to download CBSE Class 12 Business Studies Financial Market Worksheet Solved

Chapter 10 Financial Markets CBSE Class 12 Business Studies Worksheet

Students can use the Chapter 10 Financial Markets practice sheet provided above to prepare for their upcoming school tests. This solved questions and answers follow the latest CBSE syllabus for Class 12 Business Studies. You can easily download the PDF format and solve these questions every day to improve your marks. Our expert teachers have made these from the most important topics that are always asked in your exams to help you get more marks in exams.

NCERT Based Questions and Solutions for Chapter 10 Financial Markets

Our expert team has used the official NCERT book for Class 12 Business Studies to create this practice material for students. After solving the questions our teachers have also suggested to study the NCERT solutions  which will help you to understand the best way to solve problems in Business Studies. You can get all this study material for free on studiestoday.com.

Extra Practice for Business Studies

To get the best results in Class 12, students should try the Business Studies MCQ Test for this chapter. We have also provided printable assignments for Class 12 Business Studies on our website. Regular practice will help you feel more confident and get higher marks in CBSE examinations.

Where can I download the latest PDF for CBSE Class 12 Business Studies Financial Market Worksheet Solved?

You can download the teacher-verified PDF for CBSE Class 12 Business Studies Financial Market Worksheet Solved from StudiesToday.com. These practice sheets for Class 12 Business Studies are designed as per the latest CBSE academic session.

Are these Business Studies Class 12 worksheets based on the 2026 competency-based pattern?

Yes, our CBSE Class 12 Business Studies Financial Market Worksheet Solved includes a variety of questions like Case-based studies, Assertion-Reasoning, and MCQs as per the 50% competency-based weightage in the latest curriculum for Class 12.

Do you provide solved answers for CBSE Class 12 Business Studies Financial Market Worksheet Solved?

Yes, we have provided detailed solutions for CBSE Class 12 Business Studies Financial Market Worksheet Solved to help Class 12 and follow the official CBSE marking scheme.

How does solving CBSE Class 12 Business Studies Financial Market Worksheet Solved help in exam preparation?

Daily practice with these Business Studies worksheets helps in identifying understanding gaps. It also improves question solving speed and ensures that Class 12 students get more marks in CBSE exams.

Is there any charge for the Class 12 Business Studies practice test papers?

All our Class 12 Business Studies practice test papers and worksheets are available for free download in mobile-friendly PDF format. You can access CBSE Class 12 Business Studies Financial Market Worksheet Solved without any registration.