Commerce · Class 12 Commerce
Ch 7Fundamentals of Financial Markets — Class 12 Commerce, concept-first.
Fundamentals of Financial Markets is the chapter in the Andhra Pradesh Intermediate second-year Commerce syllabus that shifts the discussion away from a single business's own internal finance (already covered in your Basics of Business Finance and Sources of Finance chapters in Year 1) to the wider, organised MARKETPLA…
Key concepts
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Meaning and Classification of Financial Markets
A financial market is a mechanism bringing together those with surplus funds and those needing funds, enabling the transfer of funds through the purchase and sale of financial instruments.
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Overview
Fundamentals of Financial Markets is the chapter in the Andhra Pradesh Intermediate second-year Commerce syllabus that shifts the discussion away from a single business's own internal finance (already…
Meaning and Classification of Financial Markets
A financial market is a mechanism — not necessarily a physical place — that brings together persons and institutions with surplus funds (savers/lenders/investors) and persons and institutions needing…
Money Market — Meaning and Features
The money market is that segment of the financial market in which short-term funds — ordinarily for a period up to one year — are borrowed and lent, through the purchase and sale of short-term, highly…
Money Market Instruments
The money market functions through a defined set of short-term instruments, each suited to a slightly different borrower and purpose. The instruments prescribed for this chapter are:
Capital Market — Meaning and Features
The capital market is that segment of the financial market in which medium- and long-term funds — ordinarily for a period exceeding one year, and for equity shares with no fixed repayment period at al…
Capital Market Instruments
The capital market functions through a defined set of long-term instruments — some representing OWNERSHIP capital and some representing BORROWED (debt) capital:
Primary Market and Secondary Market
The capital market operates through two connected segments, distinguished by whether a security is being sold for the FIRST time or is being RESOLD among investors.
Functions of Financial Markets
Taken together, the money market and the capital market perform a set of functions that are essential to how an economy actually converts scattered individual savings into productive investment:
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 8 questionsHide questions8 questions
- Q1Distinction between primary and secondary market.Preview
- Q2Write a short note on: Capital Market.Preview
- Q3Write a short note on: Treasury Bill.Preview
- Q4Write a short note on: Capital Market.Preview
- Q5What are the different components of money market ?Preview
- Q6Write a short note on: Treasury BillPreview
- Q7Distinction between Primary and Secondary Market.Preview
- Q8Write a short note on: Treasury BillPreview
More questions
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- Q1Financial markets are classified into the money market and the capital market on the basis of: (A) The type of institution dealing in the in…Free
- Q2A short-term instrument issued by the Government of India at a discount to its face value, redeemed at full face value on maturity, and rega…Free
- Q3An unsecured, short-term promissory note issued at a discount by large, highly rated companies to meet their working-capital requirement, as…Free
- Q4Extremely short-term borrowing and lending between banks, to meet each other's day-to-day shortfalls in statutory reserve requirements, repa…Preview
- Q6A shareholder who is entitled to receive dividend at a fixed, pre-decided rate BEFORE any dividend is paid to equity shareholders, and to re…Preview
- Q7An instrument that acknowledges a company's debt, carries a fixed rate of interest payable whether or not the company earns a profit, and is…Preview
- Q9The segment of the capital market in which a company issues shares to the general public for the very first time, resulting in the company g…Preview