Every Book Back multiple-choice question from Introduction to Financial Markets (12th Standard Commerce, Samacheer Kalvi) — each with the correct option highlighted and a clear, worked explanation. Free to read in English and Tamil.
Explanation. The chapter opening says the financial market helps business firms and governments raise the funds they need by issuing and selling different financial instruments. The printed answer key also gives (a).
Q2
Capital market is a market for
A. Short Term Finance
B. Medium Term Finance
C. Long Term FinanceCorrect
D. Both Short Term and Medium Term Finance
Explanation. On the basis of maturity, the capital market deals in long term financial claims of more than a year, such as shares and debentures. Short term claims of one year or less belong to the money market.
Q3
Primary market is also called as
A. Secondary market
B. Money market
C. New Issue MarketCorrect
D. Indirect Market
Explanation. The primary market is where securities are sold for the first time by the issuers, so it is the New Issue Market. Buying in it is direct; the secondary market is the indirect one.
Q4
Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
A. ImmediatelyCorrect
B. In the future
C. Uncertain
D. After one month
Explanation. In the cash or spot market, delivery of the instrument and payment of cash occur immediately, so settlement is completed at once. Delivery at a pre-determined future time is the forward or futures market.
Q5
How many times a security can be sold in a secondary market?
A. Only one time
B. Two time
C. Three times
D. Multiple timesCorrect
Explanation. The comparison table shows that a security is sold only once in the new issue market but can be sold multiple times in the secondary market, where already issued securities are traded among investors.
About these Introduction to Financial Markets questions
These are the Book Back multiple-choice questions for Introduction to Financial Markets from the Tamil Nadu State Board (Samacheer Kalvi) 12th Standard Commerce syllabus. Each question shows the correct option and an original, step-by-step explanation so you understand the method, not just the answer. Use the answer key above to jump to any question, then take the practice test to check yourself under exam-like conditions.
Frequently asked questions
How many MCQs are there in Introduction to Financial Markets?
This chapter has 5 book-back multiple-choice questions, each with the correct answer and a step-by-step explanation.
Are these 12th Standard Commerce MCQs free to practise online?
Yes. Every question, answer and explanation here is free, and you can also take them as a timed practice test.
Where can I find the Introduction to Financial Markets book-back answers?
The correct option for each question is highlighted on this page with a worked explanation, plus a quick answer-key summary at the top.
