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Introduction to Financial Markets (405) — CBSE Class 10 board question

Q1. [1]
Assertion (A) : SEBI has prescribed a set of rules and regulations for each entity. Reason (R) : The entity should operate within the legal framework as prescribed by SEBI.
  1. (A) Both (A) and (R) are true and (R) is the correct explanation of (A).
  2. (B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
  3. (C) (A) is true, but (R) is false.
  4. (D) (A) is false, but (R) is true.
Previously asked in CBSE board exam
2026 92 Q3 (ii)
Generated by claude-sonnet-4-6 · 2026-06-15 07:06 · grounding rag
Model Answer

(A) Both (A) and (R) are true and (R) is the correct explanation of (A).

SEBI prescribes rules and regulations for each entity because those entities must operate within SEBI's legal framework.

Explanation

The Reason directly explains why SEBI prescribes rules — to ensure all market entities function within a legal framework. Since both statements are true and R logically explains A, option (A) is correct.

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Previous-year CBSE Grade 10 board exam questions, organised by subject and chapter, each with a model answer — free to read and print.