Financial Markets-Money Market and Its Instruments [CBSE (Central Board of Secondary Education) Class-12 Business-Studies]: Questions 1 - 6 of 6

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Question 1

Describe in Detail Subjective▾

The director of a company wants to modernize its plants and machinery by making a public issue of Shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for the new public issue of shares. Advice the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

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Explanation

The directors should approach the consultant for the new public issue of shares as the company wish to make new public issue of shares to modernize its plants and machinery.

Following are the methods which the company may adopt for the new public issue of shares:

  1. Right Issue: Since it appears from the question that the company is an existing company …

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Question 2

Write in Brief One Liner▾

Give examples of any two money market instruments.

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Question 3

Appeared in Year: 2005

Describe in Detail Subjective▾

Distinguish between Capital market and Money market on the basis of

  1. Participants
  2. Instruments traded
  3. Investment outlay
  4. Safety
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Explanation

Differences between capital market and money market are:

The Table Display Capital Market and Money Market Information
Point of DifferenceCapital MarketMoney Market

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Question 4

Describe in Detail Subjective▾

What is meant by ‘money market’ ? Briefly explain the concept of ‘call money’ .

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Explanation

Money market:- Money market is market where transaction are made in securities which are in form of money up to one year.

Call money:- Call money is also known as Call loans. Call money is loan document payment made at short notice by borrower. Maturity period of loan is between 1 and 15 days and call loans are liquid. They are considered equal to c…

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Question 5

Describe in Detail Subjective▾

Communication originally drafted in English has been very poorly translated in Hindi. Name the type of barrier to effective communication and explain any other five barriers of this type.

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Explanation

(I) Badly Expressed Messages:- Sometimes because of language problem or bad interpretation a message can be taken in wrong or opposite way.

(ii) Symbols with different Meanings:- Sometime words with various meaning are used in message. This may hamper the correct message.

(iii) Unclarified Assumptions:- Message may take form of unclarified assumption…

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Question 6

Write in Short Short Answer▾

Answer any four of the following questions in 20 - 25 sentences each. Each question carries eight marks:

Explain any four money market instruments.

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