Class 12 Finance Important Chapter 9 Capital Market

Class 12 Finance Important Chapter 9 Capital Market Solutions English Medium As Per The New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 12 Finance Important Solutions in English and select need one. AHSEC Class 12 Finance Additional Notes Download PDF. HS 2nd Year Banking Additional Solutions.

Class 12 Finance Important Chapter 9 Capital Market

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 12 Banking Additional Question Answer are part of All Subject Solutions. Here we have given HS 2nd Year Finance Important Solutions English Medium for All Chapters, You can practice these here.

Capital Market

Chapter: 9

IMPORTANT QUESTION AND ANSWER

Short Questions and Answers: 

1. What is a capital market?

Ans: A capital market is a financial market for long-term borrowing and lending of funds, typically with a maturity period of over one year.

2. What types of securities are traded in the capital market?

Ans: The capital market deals in long-term credit instruments like shares, debentures, and bonds.

3. What is the primary function of the capital market?

Ans: The primary function is to link savers and investors by mobilizing savings and directing them towards productive investments.

4. What are the two types of capital markets?

Ans: The two types of capital markets are the primary market and the secondary market.

5. How does the capital market encourage savings?

Ans: It offers various financial instruments that attract individuals and institutions to save and invest.

6. Who are the main borrowers in the capital market?

Ans: Corporations, governments, and other business concerns are the primary borrowers in the capital market.

7. What is the role of stock exchanges in the capital market?

Ans: Stock exchanges provide a platform for buying and selling securities in the secondary market.

8. How does the capital market help in economic growth?

Ans: By allocating resources to productive sectors, it helps in the expansion of trade, industry, and overall economic growth.

9. What risks are associated with the capital market?

Ans: The capital market involves higher risks due to the nature of long-term investments and market fluctuations.

10. How does the capital market stabilize security prices?

Ans: It helps stabilize prices by facilitating the supply of capital at lower interest rates, reducing market volatility.

Fill in the Blanks:

1. Capital market deals with the long-term borrowing and lending of ________.

Ans: Funds.

2. The maturity period for securities in the capital market is generally ________ one year.

Ans: Over.

3. The primary market deals with the sale of ________ securities.

Ans: New.

4. The ________ market deals with the purchase and sale of existing securities.

Ans: Secondary.

5. Capital market provides funds for financing the ________ capital requirements of businesses.

Ans: Fixed.