Previous CBSE board exam questions — Financial Market Management (Class 10)

Previous-year CBSE board exam questions in Financial Market Management, with model answers. 168 question(s), grouped by chapter and skill.

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Chapter 1: Investment Basics (37)

• In SMART Goals 'R' stands for :
• Which of the following is NOT a Sustainable Developmental Goal targeted to be achieved by 2030 ?
• Investments with low risk involve minimal or no levels of risk, providing stable and often guaranteed returns…
• _________ are interconnected with investments via a diverse array of intermediaries that employ various finan…
• What does investment mean ?
• Investment in precious metal is a type of _________ class.
• Mr. Sandeep, a new investor, is interested in investing in the stock market. He has learned about the advanta…
• If interest rate is compounded quarterly, then the number of conversion periods per year would be _________.
• Mr. Anil owns 500 physical shares of XYZ Ltd. He wants to sell them on the stock exchange but is worried abou…
• Answer the following sub-parts:
• Answer the following sub-parts based on the given passage.
• "I will read my entire year's syllabus in one day and get good marks." It is an example of _________.
• This includes what to produce or sell, how much and where to sell. Identify this function of entrepreneur.
• When you invest money, you earn interest on your capital. The next year you earn interest on both your origin…
• Companies whose potential for growth in sales and earnings are excellent, are growing faster than other compa…
• Which of the following is a long-term investment option ?
• __________ is a percentage of the face value of a share that a company returns to its shareholders from its a…
• When we borrow money, we are expected to pay for using it – this is known as __________. (Gain / Interest / P…
• ___________ is the sum of present values of all the cash inflows of this annuity.
• Ravi and his best friend, Shiv have been practicing for annual school dance competition. They both are perfor…
• Ramya and Ramu both own plant shop. Ramu sits at his shop every day. When customers come, he sells plants to…
• Suppose you are given two options : (a) Receive ` 10,000 now or (b) Receive ` 10,000 after three years Which…
• A way of thinking that helps to accept failure, not give up, continuously experiment etc. is crucial for an e…
• "Akshita is always punctual at school. She has a regular schedule that she follows everyday. She plans for st…
• Enables you to perform a particular job or task with considerable proficiency.
• Define a career.
• What is meant by 'Real rate of return'?
• Give two examples of financial assets.
• "It is often the first banking product people use, which offers low interest."
• Discuss role of entrepreneur in the society.
• Value Investment Strategy
• “One must believe in oneself.” Mention the quality of Entrepreneur.
• List any two functions of an entrepreneur.
• With the introduction of high agriculture tools, we can grow more food by using fertilisers, pesticides and h…
• Describe the ways through which a person can earn a living.
• What do you mean by ‘Time value of Money’ ?
• What is meant by conversion period ?

Chapter 2: Securities (10)

• XYZ Ltd. is a mid-sized manufacturing company seeking to raise funds for operational expansion. The company i…
• Which of the following is not a security ?
• Read the following statements Assertion (A) and Reason (R) and choose the correct option from those given bel…
• What does maturity of a 'Bond' refer to ?
• "CRISIL is a credit rating agency in India". Which of the following is not a credit rating agency in India:
• Owners of these kinds of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be…
• A bond giving investor the option to convert the bond into equity at a fixed conversion price is called
• A part of the profit is retained by the company for meeting fund requirements in future.
• Differentiate between equity shareholders and preference shareholders.
• “When a company declares a stock split, the number of shares of that company increases, but the market cap re…

Chapter 3: Primary Market (17)

• Jaykant Shikre owns one hundred shares of a company. He has been given a special offer to subscribe to a new…
• In a book building issue, the issuer must specify either a price band or a floor price in the prospectus. The…
• Identify and outline two key advantages of the book-building processes within NSE IPO system.
• Define the following terms : Foreign Currency Convertible Bonds (FCCB)
• Define the following terms : Lock-in
• Define the following terms : Abridged Prospectus
• Define the following terms : Public Issue
• _________ is a mechanism, where during the period of which the IPO is open, bids are collected from investors…
• Which of the following is not an advantage of Book Building through NSE ?
• In a book building issue, the issuer is required to indicate either the price band or a floor price in the pr…
• The draft offer Document is available on the SEBI website for public comments for a period of ________ from t…
• Most companies are usually started privately by their promoter(s). The promoters' capital / and the borrowing…
• Foreign capital issuance is the process by which a foreign entity raises capital through the issuances of sec…
• Minimum number of days for which a bid remains open during book building.
• "It accompanies the application form of public issues."
• What do you understand by 'Global Depository Receipts'?
• Read the given passage and answer the questions that follow. (Part of: Answer any 3 out of given 5 questions…

Chapter 4: Secondary Market (29)

• Stock exchanges facilitate opportunities for investors to engage in the buying and selling of securities. Ide…
• Statement-1 : The debt includes various instruments that enable the buying and selling of loans in exchange f…
• What does it mean to have securities listed on the stock exchange ?
• To verify the registration status of a broker or sub-broker, it is recommended to check their registration nu…
• Statement-1 : A company's market capitalization can provide insight into a stock's risk factor. Statement-2 :…
• Are bonds assessed based on their credit quality ?
• XYZ Ltd. is a mid-sized manufacturing company seeking to raise funds for operational expansion. The company i…
• Answer the following sub-parts based on the given scenario.
• Explain the following : Aim of Investor Protection Fund
• The means by which the information is sent :
• Stay updated with best practices and read up on new information always. Prepare yourself for new changes, so…
• The following are navigation keys except :
• It is entrusted with responsibility of regulating and developing the securities market. It formulates regulat…
• When we borrow money, we are expected to pay for using it – this is known as __________. (Gain / Interest / P…
• Read the following statements Assertion (A) and Reason (R) and choose the correct option from those given bel…
• Secondary market comprises of ________ and the ________.
• Statement-I : On account of non-delivery of securities by the trading member on the pay-in day, the securitie…
• What do you mean by "files" and "folders" in computer system ?
• What does maturity of a 'Bond' refer to ?
• Stock Exchange market is a vital component of a capital market. It facilitates the transaction between trader…
• Explain the following : Types of return received by investor in equities
• "The market which deals in securities previously issued" is called
• How can we find Market Capitalisation of a company?
• The trading system of NSE is called:
• Write the steps to create new folder.
• What does 'Listing agreement' mean? (Part of: Answer any 4 out of given 6 questions in 20-30 words each.)
• "Equities have the potential to increase in value over time". What are the benefits of investing in equities…
• Pay-out
• "A contract note is a confirmation of trade on a particular day issued for and, on behalf of, a client by a r…

Chapter 5: Derivatives (6)

• Which of the following is a characteristic of future contracts ?
• What is the role of the commodity derivatives market ?
• A farmer agrees to sell his produce of wheat to a Miller, 6 months later when his crop is ready, he sells his…
• Commodity derivatives market trade contracts for which the underlying asset is __________.
• Commodity derivatives market trade contracts for which the underlying asset is ______.
• A buyer of an option pays for the right to exercise his option. Identify term used for this.

Chapter 6: Depository (12)

• Mr. Sandeep, a new investor, is interested in investing in the stock market. He has learned about the advanta…
• Mr. Anil owns 500 physical shares of XYZ Ltd. He wants to sell them on the stock exchange but is worried abou…
• It is essential to recognise the implications of these options to fully understand the impact of dematerialis…
• List two services that depository participants offer to investors.
• Which of the following provides dematerialization of securities ?
• It is like a bank wherein the securities are deposited in electronic form :
• Depository Participants (DPs) open investor accounts, in which they hold the securities that they have bought…
• What do you understand by 'Dematerialisation'?
• Hold the fund in ______ account.
• Describe the process of dematerializing of shares.
• “The Depository provides its services to investors through its agents.” By what destignation are the agents k…
• Describe any two benefits of dematerialized (Demat) account.

Chapter 7: Mutual Funds (10)

• Explain two basic investment styles prevalent in active fund management.
• Investment decisions in a mutual fund are made by fund managers who have the expertise, information and knowl…
• Explain the various types of risk in investing in mutual fund.
• Expand the term 'ETF'.
• ______ are specialised form of mutual funds that invest in extremely short-term fixed income instruments.
• Active fund Management
• Net Asset Value
• Name the regulatory body for Mutual Funds.
• What is meant by ‘Gilt Funds’ ?
• “Every mutual fund investor enjoys certain rights under SEBI’s laws and rules and fund houses are bound to ex…

Chapter 8: Miscellaneous (37)

• Which type of feedback provides precise details about what has been done well or needs improvement ?
• An acquired or natural capacity that enables you to perform a particular task with considerable proficiency i…
• Which of the following is a part of yearly maintenance schedule for the computer ?
• What is the primary function of an entrepreneur in society ?
• Assertion (A) : SEBI has prescribed a set of rules and regulations for each entity. Reason (R) : The entity s…
• Companies may issue shares to their shareholders without charge, proportionate to the number of shares owned…
• Do stock splits, corporate actions have an effect on corresponding shares held by an investor ?
• What is Pay-in-Day ?
• "Clear and concise communication is of immense importance in work and business environment". Explain the give…
• Name the four skills which must be master to succeed in life.
• What actions can be performed on your computer screen by using a mouse ?
• "A clearing corporation plays a crucial role in managing risk in financial markets." What is the primary risk…
• Explain the following : Role of Arbitration
• Which of following is not a sustainable development goal according to United Nations ?
• "Portfolio Management Services" could be offered only by intermediaries having specific approval of _________…
• What is a record date ?
• It keeps the client informed of corporate actions taken or to be taken by the issue of securities, having a b…
• List the four types of barriers of communication.
• One initiative was taken by Ministry of Railways in Varanasi and Rai Bareilly where they introduced clay pot…
• "Nifty is barometer of the Indian markets." In the light of this statement define 'Nifty'.
• Explain the following : The function of clearing corporation
• Which one of the following short-cut keys is used to copy?
• These files are created when you are running programs.
• "Its regulatory jurisdiction covers corporates in the issuance of capital and transfer of securities, in addi…
• Amit holds 400 shares of X Ltd. Company decides to implement a stock spilt of 4 for 1. How many shares Mr. Am…
• Mention two examples of 'Corporate Actions'.
• Explain the skill you must master to succeed in life. (Part of: Answer any 3 out of given 5 questions on Empl…
• "Being well versed with stress coping mechanisms helps people lead healthy and happier life." What are the be…
• Discuss role of entrepreneur in the society.
• "A business plan serves as a guide to determine the business objectives and the course of action. It helps to…
• Record Date
• Index Fund
• "National Clearing Limited (NCL), a 100% subsidiary of NSE, performs the role of a clearing corporation for t…
• Define Sustainable Development.
• State any two problems related to sustainable development.
• By what name the corporate action which splits the existing shares of a particular face value into smaller de…
• Explain any two fucntions of clearing corporation.

Chapter 9: Concepts & Modes of Analysis (6)

• Assertion (A) : All fixed assets, except for land, have a defined lifespan. Reason (R) : Each year, it is ass…
• "Reduced inequalities is one of our sustainable goals". State the methods used to reduce inequalities.
• What items are included in the liability section of a company's balance sheet ?
• Financial performance of the company and certain key financial parameters like Earning Per Share (EPS), P/E r…
• "National Hydroelectric Power Company (NHPC) Ltd., National Thermal Power Company (NTPC) Ltd., Tata Power Com…
• Companies publish annual reports and send abridged versions to shareholders free of cost. An annual report of…

Chapter 10: Ratio Analysis (11)

• _________ measures the profit available to the equity shareholders per share, that is, the amount that they c…
• The long-term financial strength of a firm is assessed by its capacity to consistently pay interest and to re…
• Which of the following is the formula of Debt-Equity ?
• List two 'applications of funds' and two sources of funds.
• What do mean by Current Ratio ? Also write the formula of Current Ratio.
• What is the formula of P/E Ratio?
• Explain the Debt-Asset Ratio.
• Write the formula of Stock Turnover Ratio.
• Long term solvency of a firm can be judged by using which ratios ?
• What do you mean by ‘Reserves and Surplus’ ?
• Calcualte the Gross Profit Ratio from the following information :