CBSE Class 10 Sample Paper 2026 Solution for Introduction to Financial Markets

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CBSE | DEPARTMENT OF SKILL EDUCATION
INTRODUCTION TO FINANCIAL MARKETS (SUBJECT CODE: 405)
MARKING SCHEME FOR CLASS X (SESSION 2025-2026)
Max. Time: 2 Hours Max. Marks: 50
General Instructions:
1. Please read the instructions carefully.
2. This Question Paper consists of 21 questions in two sections – Section A & Section B.
3. Section A has objective-type questions, whereas Section B contains subjective-type questions.
4. Out of the given (5 + 16 =) 21 questions, a candidate has to answer (5 + 10 =) 15 questions
in the allotted (maximum) time of 2 hours.
5. All questions of a particular section must be attempted in the correct order.
6. SECTION A - OBJECTIVE TYPE QUESTIONS (24 MARKS):
i. This section has 05 questions.
ii. There is no negative marking.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.
7. SECTION B – SUBJECTIVE TYPE QUESTIONS (26 MARKS):
i. This section contains 16 questions.
ii. A candidate has to do 10 questions.
iii. Do as per the instructions given.
iv. Marks allotted are mentioned against each question/part.

SECTION A: OBJECTIVE TYPE QUESTIONS
Source
Material Page
Unit/
(NCER/ no. of
Q. No. QUESTION Chap. Marks
CBSE source
No.
Study material
Material)
Q. 1 Answer any 4 out of the given 6 questions on Employability Skills (1 x 4 = 4
marks)
i. Non-verbal communication NCERT 1 10 1
ii. stress-relieving techniques NCERT 2 42 1
iii. Emotional intelligence NCERT 2 43 1
iv. damage the data and software programs NCERT 3 80 1
v. Self-employed NCERT 4 85 1
vi. The Sustainable Development Goals (SDGs) NCERT 5 106 1
Q. 2 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Bonds CBSE 1 4 1
ii. Derivative CBSE 1 5 1
iii. Index CBSE 1 6 1

iv. Dematerialization CBSE 1 6 1
v. SEBI CBSE 2 9 1
vi. Primary CBSE 2 9 1
Q. 3 Answer any 5out of the given 6 questions (1 x 5 = 5 marks)
i. Rights Issue CBSE 3 12 1
ii. 20% CBSE 3 14 1
iii. The IPO market 24/7 CBSE 3 15 1

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iv. Euro Issues CBSE 3 17 1
v. Broker/Trading Member CBSE 4 21 1
vi. clearing corporation CBSE 4 22 1
Q. 4 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Equity Shares CBSE 4 25 1
ii. Buyer’s price CBSE 4 27 1
iii. Call Option CBSE 5 31 1
iv. Call Buyer CBSE 5 31 1
v. National Securities Depository Limited CBSE 6 34 1
vi. Depositary Participants CBSE 6 35 1
Q. 5 Answer any 5 out of the given 6 questions (1 x 5 = 5 marks)
i. Net Asset Value CBSE 7 38 1
ii. Face Value CBSE 8 45 1
iii. Pay out Day CBSE 8 47 1
iv. current assets - current liabilities CBSE 9 62 1
v. Authorized capital CBSE 9 60 1
vi. Average Collection Period CBSE 10 67 1

SECTION B: SUBJECTIVE TYPE QUESTIONS
Source
Material Page
Unit/
Q. (NCERT/ no. of
QUESTION Chap. Marks
No. CBSE source
No.
Study material
Material)
Answer any 3 out of the given 5 questions on Employability Skills in 20 – 30 words each
(2 x 3 = 6 marks)
Q. 6 Ans: Feedback is an important part of the NCERT 1 16,17 2
communication cycle. For effective communication, it
is important that the sender receives an
acknowledgement from the receiver about getting the
message across.
While a sender sends information, the receiver
provides feedback on the received message.
Q. 7 Ans: Managing stress is about making a plan to be able NCERT 2 41 2
to cope effectively with daily pressures. The ultimate
goal is to strike a balance between life, work,
relationships, relaxation and fun. By doing this, you are
able to deal with daily stress triggers and meet these
challenges head on.
Q. 8 Ans: The most important software in any computer is NCERT 3 64 2
the Operating System (OS). This is the software that
starts working as soon as we switch on a computer. It
displays the desktop on the monitor. Some of the most
commonly used operating systems for laptops and
desktop are Ubuntu, Microsoft Windows and Mac OS
Q. 9 Ans For example, a doctor who works for a hospital is NCERT 4 100 2
a wage employed person. If the same doctor has their
own clinic, he or she is self-employed. A self-employed
person running a business to satisfy a need by trying
new ideas is an entrepreneur.

2

Q. 10 Ans NCERT 5 105 2
(a) Food: The amount of rich, fertile land needed to
grow crops, such as wheat, rice, etc., is becoming less
as we are using up more and more land for other
purposes.
(b) Water: We use fresh water from rivers and ponds
for drinking and cleaning but dump garbage into them.
The rivers and ponds are getting polluted.
Answer any 4 out of the given 6 questions in 20 – 30 words each (2 x 4 = 8 marks)
Q. 11 Ans: CBSE 3 12 2
Initial Public Offering (IPO) : An unlisted
company makes either a fresh issue of securities
or an offer for sale of its existing securities or
both for the first time to the public.
Rights Issue: a listed company which proposes to
issue fresh securities to its existing shareholders as
on a record date.

Q. 12 Ans: CBSE 4 26 2
Broadly there are two factors: (1) stock specific
and (2) market specific.
● The stock-specific factor is related to
people’s expectations about the
company, its future earnings capacity,
financial health and management, level of
technology and marketing skills

● The market specific factor is influenced by
the investor’s sentiment towards the
stock market as a whole

Q. 13 Ans: CBSE 6 34 2

● Immediate transfer of securities
● No stamp duty on transfer of securities
● Reduction in transaction cost
● Ease of nomination facility

(Any four)
Q. 14 Ans: Nifty50 is a scientifically developed, 50 stock CBSE 8 46 2
index, reflecting accurately the market movement
of the Indian markets. It comprises some of the
largest and most liquid stocks traded on the NSE.
It is maintained by India Index Services & Products
Ltd. (IISL) which is a group company of NSE. Nifty
is the barometer of the Indian markets.

3

Q. 15 Ans: Money has time value. The idea behind time CBSE 9 52 2
value of money is that a rupee now is worth
more than rupee in the future.
The relationship between the value of a rupee
today and value of a rupee in future is known as
‘Time Value of Money’.

Q. 16 Ans: CBSE 10 66 2
Liquidity refers to the ability of a firm to meet its
financial obligations in the short-term which is less
than a year.
The current ratio measures the ability of the firm to
meet its current liabilities from the current assets.
Higher the current ratio, greater the short-term
solvency
Answer any 3 out of the given 5 questions in 50– 80 words each (4 x 3 = 12 marks)
Q. 17 Ans: CBSE 3 15 4
● A part of the guidelines issued by SEBI
(Securities and Exchange Board of India) is the
disclosure of information to the public. 1M
● This disclosure includes information like the
reason for raising the money, the way money
is proposed to be spent, the return expected
on the money etc. 1M
● This information is in the form of ‘Prospectus’
which also includes information regarding the
size of the issue, the current status of the
company, its equity capital, its current and
past performance, the promoters, the project,
cost of the project, means of financing,
product and capacity etc. 1M

● It also contains a lot of mandatory
information regarding underwriting and
statutory compliances. This helps investors to
evaluate short term and long term prospects
of the company.1M

Q. 18 Ans: In Indian securities markets, the term ‘bond’ is CBSE 4 28 4
used for debt instruments issued by the Central and
State Governments and public sector organizations
and the term ‘debenture’ is used for instruments
issued by the private corporate sector. 1M
● Maturity: Maturity of a bond refers to the
date, on which the bond matures, which is
the date on which the borrower has agreed to
repay the principal. Term-to-Maturity refers

4

to the number of years remaining for the
bond to mature. 1M
● Coupon: Coupon refers to the periodic
interest payments that are made by the
borrower (who is also the issuer of the bond)
to the lender (the subscriber of the bond).
Coupon rate is the rate at which interest is
paid, and is usually represented as a
percentage of the par value of a bond. 1M
● Principal: Principal is the amount that has
been borrowed, and is also called the par
value or face value of the bond. The coupon is
the product of the principal and the coupon
rate.1M
Q. 19 Ans: CBSE 7 37 4
There are several benefits from investing in a Mutual
Fund. Following are the basic benefits
Small investments:
Mutual funds help you to reap the benefit of returns
by a portfolio spread across a wide spectrum of
companies with small investments.
Professional Fund Management:
Professionals having considerable expertise,
experience and resources manage the pool of money
collected by a mutual fund. They thoroughly analyze
the markets and economy to pick good investment
opportunities.
Q. 20 Ans: If the value of the stock doesn’t change, what CBSE 8 45 4
motivates a company to split its stock? Though there
are no theoretical reasons in financial literature to
indicate the need for a stock split, generally, there are
mainly two important reasons. As the price of a
security gets higher and higher, some investors may
feel the price is too high for them to buy, or small
investors may feel it is unaffordable. Splitting the
stock brings the share price down to a more
“attractive” level. In our earlier example, to buy 1
share of company ABC you need Rs. 40 pre-split, but
after the stock split the same number of shares can
be bought for Rs.10, making it attractive for more
investors to buy the share. This leads us to the second
reason. Splitting a stock may lead to increase in the
stock’s liquidity, since more investors are able to
afford the share and the total outstanding shares of
the company have also increased in the market.
e.g. If a company has issued 1,00,00,000 shares with a
face value of Rs.10 and the current market price being
Rs.100, a 2-for-l stock split would reduce the face value
of the shares to 5 and increase the number of the
company’s outstanding shares to 2,00,00,000,

5

(1,00,00,000*(10/5)). Consequently, the share price
would also halve to Rs.50 so that the market
capitalization or the value shares held by an investor
remains unchanged. It is the same thing as exchanging
a Rs. 100 note for two Rs.50 notes; the value remains
the same.

Q. 21 Ans: CBSE 9 60,61 4
1. Authorized capital is the maximum capital
that a company is authorized to raise.
2. Issued capital is that part of the authorized
capital which is offered by the company for
being subscribed by members of the public or
anybody.
3. Subscribed capital is that part of the issued
capital which is subscribed (accepted) by the
public.
4. Paid up capital refers to that part of the called
up capital which has been actually paid by the
shareholders. Some of the shareholders might
have defaulted in paying the called up money.
Such a defaulted amount is called arrears.
From the called up capital, calls in arrears are
deducted to obtain the paid up capital.

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Study Materials
Notes

Model Papers Class 6 Notes

Sample Papers Class 7 Notes
Half Yearly Sample Papers Class 8 Notes

Class 9 Notes
Important Resources
Class 10 Notes
Periodic Table
Class 11 Notes
Writing Skills / Formats

Maps of India / World Class 12 Notes

Books and Solutions

NCERT Books
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HC Verma Chapter Wise Solutions
RD Sharma Solutions
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