CMAT PYQs for Financial Markets with Solutions: Practice CMAT Previous Year Questions

Senior Content Strategist | MBA Professional | Updated on - Jan 19, 2026

Financial Markets is an important topic in the Innovation & Entrepreneurship section in CMAT exam. Practising this topic will increase your score overall and make your conceptual grip on CMAT exam stronger.

This article gives you a full set of CMAT PYQs for Financial Markets with explanations for effective preparation. Practice of CMAT Innovation & Entrepreneurship PYQs including Financial Markets questions regularly will improve accuracy, speed, and confidence in the CMAT 2026 exam.

CMAT PYQs for Financial Markets with Solutions

1.
Given below are two statements:
Statement I :Changing competition in market place is the primary reason for govt involvement in business globally.
Statement II:Increase in cost of production is the primary reason for govt in business globally.
In the light of the above statements,choose the most appropriate answer from the options given below:
- Both Statement I and Statement II are correct
- Both Statement I and Statement II are incorrect
- Statement I is correct but Statement II is incorrect
- Statement I is incorrect but Statement II is correct
View Solution
2.
Angel investors are considered to be opposite of
- Arbitrageurs
- Global investors
- Hedge funds
- Venture capitalists
View Solution
3.
Estimating and financing funds requirement schemes are offered by:
A. Various commercial banks
B. Industrial Development Bank of India (IDBI)
C. Industrial Credit and Investment Corporation of India (ICICI)
D. Small Industrial Development Bank of India (SIDBI)
E. Reserve Bank of India
Choose the most appropriate answer from the options given below:
- A, B, D and E holds true
- A, C, D and E holds true
- A, B, C and D holds true
- B, D and E holds true
View Solution
4.
Which of the following factors are not relevant for judging the adequacy of market?
- Labour Market
- Domestic Market Demand
- Export Market Demand
- Competitors and their market shares
View Solution

5.
Match List I with List II
Choose the correct answer from the options given below:
List I List II
(A) Availability of
Raw Material,
Plant, Machinery,
etc. I- Business Plan
(B) Demand
Preferences and
Customer II- Financial
Feasibility
(C) Profit
Projections III- Technical
Feasibility
(D) Market,
Technical, Financial IV- Market
Feasibility

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)
(A)-(1), (B)-(II), (C)-(III), (D)-(IV)
(A)-(II), (B)-(1), (C)-(IV), (D)-(III)
(A)-(III), (B)-(IV), (C)-(II), (D)-(I)

View Solution

6.
What type of financing do "Angel investors" usually provide?
- Debt
- Equity
- Stock sales
- None of the above
View Solution
7.
Given below are two statements:
Statement I : ‘Diversification’ means adding new lines of business.
Statement II : Differentiation means creating specialized products that gain competitive advantage with a particular segment of the market. In light of the above statements, choose the correct answer from the options given below
- Both Statement I and Statement II are true
- Both Statement I and Statement II are false
- Statement I is true but Statement II is false
- Statement I is false but Statement II is true
View Solution
8.
For a project to be viable, the first necessary condition is
- That it should have a market
- That it should have government support
- That its expected return should be greater than bank rate
- That it should be based on tried and tested technology
View Solution
9.
Which of the following factors must you judge to estimate the market potential?
(A) Present Market Demand
(B) Export Market Demand
(C) Future Market Demand
(D) Labour Demand
(E) Retailer's Consumption Preferences
Choose the correct answer from the options given below:
- (B), (C) and (D) only
- (A), (B) and (D) only
- (A), (B) and (C) only
- (B), (D) and (E) only
View Solution
10.
Venture Capital financing is _______
(A) Type of financing by venture capital.
(B) It is private equity capital provided as seed funding to early stage.
(C) Investment in blue chip companies for assured return.
(D) It is a high risk investment made with an intention of creating high returns.
(E) Done in technology projects only.
Choose the correct answer from the options given below :
- (A), (B), (D) and (E) only are correct statements.
- (A), (B) and (D) only are correct statements.
- (B), (C) and (D) only are correct statements.
- (C), (D) and (E) only are correct statements.
View Solution
11.
Given below are two statements: one is labelled as Assertion A and the other one is labelled as Reason R.
Assertion A: Industrial Development Bank of India (IDBI) caters the financial needs of the budding industries.
Reason R: Financial constraint is one of the biggest reasons of business failures in entrepreneurship and there is need to provide financing support to them.
In the light of the above statements, choose the most appropriate answer from the option given below:
- Both A and R are correct and R is the correct explanation of A
- Both A and Rare correct and R is the NOT the correct explanation of A
- A is correct but R is not correct
- A is not correct but R is correct
View Solution
12.
Financial Institutions are not merely transactional entities but key architects of economic progress. Their roles also span in
(A) Capital formation
(B) Risk management
(C) Inclusive finance
(D) Arbitration
(E) Consultation in project report preparation to intern during their internship program.
Choose the correct answer from the options given below :
- (A) and (B) only
- (A), (B) and (C) only
- (B), (C) and (D) only
- (B), (C), (D) and (E) only
View Solution
13.
Which are the BRIC countries?
- Britain, Russia, India and Canada
- Brazil, Russia, India and China
- Bangladesh, Rwanda, India and China
- Bhutan, Rwanda, India and Cuba
View Solution
14.
Which of the following can give an enterprise dealing in instant coffee a competitive edge ?
- Quality, taste and location
- Population increase in the city
- Ambience and customer relationship
- (1) and (3) only
View Solution

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CMAT PYQs for Financial Markets with Solutions: Practice CMAT Previous Year Questions

CMAT PYQs for Financial Markets with Solutions

2.
Angel investors are considered to be opposite of

4.
Which of the following factors are not relevant for judging the adequacy of market?

6.
What type of financing do "Angel investors" usually provide?

8.
For a project to be viable, the first necessary condition is

9.
Which of the following factors must you judge to estimate the market potential?
(A) Present Market Demand
(B) Export Market Demand
(C) Future Market Demand
(D) Labour Demand
(E) Retailer's Consumption Preferences
Choose the correct answer from the options given below:

13.
Which are the BRIC countries?

14.
Which of the following can give an enterprise dealing in instant coffee a competitive edge ?

Comments

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List I	List II
(A) Availability of Raw Material, Plant, Machinery, etc.	I- Business Plan
(B) Demand Preferences and Customer	II- Financial Feasibility
(C) Profit Projections	III- Technical Feasibility
(D) Market, Technical, Financial	IV- Market Feasibility

CMAT PYQs for Financial Markets with Solutions

2.Angel investors are considered to be opposite of

4.Which of the following factors are not relevant for judging the adequacy of market?

6.What type of financing do "Angel investors" usually provide?

8.For a project to be viable, the first necessary condition is

9.Which of the following factors must you judge to estimate the market potential?(A) Present Market Demand(B) Export Market Demand(C) Future Market Demand(D) Labour Demand(E) Retailer's Consumption PreferencesChoose the correct answer from the options given below:

13.Which are the BRIC countries?

14.Which of the following can give an enterprise dealing in instant coffee a competitive edge ?

Comments

SUBSCRIBE TO OUR NEWS LETTER

2.
Angel investors are considered to be opposite of

4.
Which of the following factors are not relevant for judging the adequacy of market?

6.
What type of financing do "Angel investors" usually provide?

8.
For a project to be viable, the first necessary condition is

9.
Which of the following factors must you judge to estimate the market potential?
(A) Present Market Demand
(B) Export Market Demand
(C) Future Market Demand
(D) Labour Demand
(E) Retailer's Consumption Preferences
Choose the correct answer from the options given below:

13.
Which are the BRIC countries?

14.
Which of the following can give an enterprise dealing in instant coffee a competitive edge ?