Class 12

Balbharti Maharashtra State Board 12th Chemistry Important Questions Chapter 13 Amines Important Questions and Answers.

Maharashtra State Board 12th Chemistry Important Questions Chapter 13 Amines

Question 1.
What are amines?
Answer:
Amines : The alkyl or aryl derivatives of ammonia in which one, two or all the three hydrogen atoms attached to nitrogen are replaced by same or different alkyl or aryl groups are called amines. OR Amines are nitrogen-containing organic compounds having basic character.

Example : methyl amine : CH₃ – NH₂

Question 2.
Classify the following amines as primary, secondary and tertiary.
Answer:

Question 3.
Mention the functional group in :
(1) Primary amine
(2) Secondary amine
(3) Tertiary amine.
Answer:
(1) A primary amine has a functional group – NH₂ (amino group).
Example : ethylamine, C₂H₅ – NH₂
(2) A secondary amine has a functional group – NH – (imino group).
Example :
(3) A tertiary amine has a functional group (tertiary nitrogen atom)

Example :

Question 4.
Write common and IUPAC names of following compounds :
Answer:
(A) Primary amines :


(B) Secondary amine :

(C) Tertiary Aimines :
.

Question 5.
Give the structures of the following :
Answer:

Question 6.
Give the IUPAC names of the following amines :
Answer:

Question 7.
Write the IUPAC names of the following amines :
Answer:

Question 8.
Give the structures and IUPAC names of the following amines :
Answer:

Question 9.
Classify the following amines as primary, secondary and tertiary and write the IUPAC names.
Answer:

Question 10.
Write the structures and classify the following amines as primary, secondary, tertiary amines.
Answer:

Question 11.
Write the common and IUPAC name of a tertiary amine in which one methyl, one ethyl and one w-propyl group is attached to nitrogen.
Answer:

Question 12.
How will you prepare ethanamine from ethyl iodide?
Answer:
When ethyl iodide is heated with excess of alcoholic ammonia, under pressure at 373 K ethanamine is obtained as a major product.

Question 13.
How is a nitroalkane converted to a primary amine?
OR
What is the action of LiAlH4/ether on (i) 1-Nitropropane (ii) 2-MethyI-l-nitropropane?
Answer:
When a nitroalkane is refluxed with tin (or iron) and concentrated HCl it gives corresponding primary amine.

For example, (1) nitromethane on reduction by refluxing with Sn and concentrated HCl gives methylamine.

(2) 1-Nitropropane on reduction with Sn and concentrated HCl gives propan-1-amine.

(3) Niirobenzcnc on reducion with tin and concentrated HCI or by using H₂/Pd in ethanol gives anilinc.

(4) When nitropropane is reduced in the presence of LiAlH₄ in ether, n-propyl amine is obtained.

(5) When 2-methyl-1-nitropropane is reduced in the presence of LiAlH₄ in ether, 2-methyl propan-1-amine is obtained.

Question 14.
How will you prepare aniline from nitrobenzene?
OR
How is aniline prepared from nitro compounds?
Answer:
Nitrobenzene is reduced to aniline by passing hydrogen gas in the presence of finely divided nickel, palladium or platinum.

Question 15.
Identify the compounds A and B in the following reactions

Answer:

Question 16.
How will you obtain a primary amine from an alkyl cyanide (nitrile)?
OR
Write a short note on Mendius reduction.
Answer:
Alkyl cyanides (nitriles) on reduction by sodium and ethyl alcohol form corresponding primary amines. This reaction is called Mendius reduction.

For example; propionitrile on reduction by sodium and ethanol gives n-propyl amine (Propan-1-amine).

Methyl cyanide or acetonitrile on reduction by sodium and ethanol gives ethanaminc.

Question 17.
How will you prepare ethylamine from acetonitrile?
OR
How is ethanamine prepared from methyl cyanide?
OR
What is the action of a mixture of sodium and alcohol on acetonitrile?
Answer:
Methyl cyanide or acetonitrile on reduction by sodium and ethyl alcohol forms ethanamine. The reaction is called Mendius reduction.

Question 18.
How will convert phenyl acetonitrile to β-phenylethylamine?
Answer:
When phenyl acetonitrile is reduced in the presence of sodium and ethanol, β-phenyl ethylamine is obtained.

Question 19.
How will you obtain primary amine from an acid amide?
Answer:
Acid amides on reduction with lithium aluminium hydride or sodium, ethanol form corresponding primary amines.

For example : Acetamide on reduction with lithium aluminium hydride or sodium, ethanol gives ethylamines.

Question 20.
Explain Hoffmann degradation of amides.
Write a note on Hoffmann bromamide degradation.
Answer:
The conversion of amides into amines in the presence of bromine and alkali is known as Hoffmann degradation of amides. An important characteristic of this reaction is that an amine with one carbon less than those in the amide is formed. Thus, decreasing the length of carbon chain. This reaction is an example of molecular rearrangement and involves the migration of an alkyl or aryl group from the carbonyl carbon to the adjacent nitrogen atom. For example,

(1) When propanamide is treated with bromine and aqueous or alcoholic sodium hydroxide, ethanamine is obtained which has one carbon atom less.

(2) When benzamide is treated with bromine and aqueous or alcoholic sodium hydroxide, aniline is obtained.

Question 21.
How will you obtain methyl amine from acetamide?
Answer:
When acetamide is treated with bromine and aq or alcoholic solution of KOH, methyl amine is obtained, which has one cabon atom less.

Question 22.
How will you convert the following?

(1) Ethyl bromide to ethylamine.
Answer:

(2) Propionitrile to n-propyl amine.
Answer:

(3) Acetonitrile to ethylamine.
Answer:

(4) Phenyl acetonitrile to β-phenylethyl amine.
Answer:

(5) Acetamide to ethylamine.
Answer:

(6) Nitropropane to propan-l-amine.
Answer:

(7) Nitrobenzene to Aniline.
Answer:

(8) Benzamide to aniline.
Answer:

Question 23.
How will you prepare propan-l-amine from (1) butane nitrile (2) 1-nitropropane (3) propanamide (4) butanamide?
Answer:
(1) From butane nitrile :
When butane nitrile is reduced by sodium and ethanol, it gives propan-l-amine.

(2) From 1-nitropropane :
When 1-nitropropane is reduced in the presence of tin and cone, hydrochloric acid, propan-l-amine is obtained.

(3) From propanamide :
When propanamide is reduced in the presence of lithium aluminium hydride, propan-l-amine is obtained.

(4) From butanamide :
When butanamide is treated with bromine and aq. KOH, propan-l-amine is obtained.

Question 24.
Write a reaction to, convert acetic acid into methyl amine.
Answer:

Question 25.
Primary and secondary amines have boiling points higher than the tertiary amines. Explain why?
Answer:
(1) The N – H bond in amines is polar in nature because of electronegativities of nitrogen (3.0) and hydrogen (2.1) are different.
(2) Due to the polar nature of N – H bond, primary and secondary have strong intermolecular hydrogen bonding. Tertiary amines do not have intermolecular hydrogen bonding as there is no hydrogen atom on nitrogen of tertiary amine. Thus, intermolecular forces of attraction are strongest in primary and secondary amines and weakest in to tertiary amines. Hence, primary and secondary amines have boiling points higher than the tertiary amines.

Question 26.
Amines have boiling points higher than the hydrocarbon but lower than the alcohols of comparable masses. Explain, why?
Answer:
Amines are polar than alkanes but less polar than alcohols. Primary and secondary amines form intermolecular hydrogen bonds. This hydrogen bonding leads to an associated structure. The association is more in primary amines than that in secondary amines as there are two hydrogen atoms attached to the nitrogen atom. However, tertiary amines do not form intermolecular hydrogen bonds because they do not contain any hydrogen atoms attached to the nitrogen atom. Hence, amines have higher boiling points than the hydrocarbons but lower boiling points than the alcohols of comparable masses.

Compound	Molar mass	Boiling points (K)
nC2H5CH(CH3)2	72	300
nC4H9NH2	73	350.8
nC4H9OH	74	391

Question 27.
Arrange the following compounds in the decreasing order of their solubility in water.
(a) Ethyl amine, diethyl amine and triethyl amine.
Answer:
Diethyl amine > triethyl amine > ethyl amine
(The reason that ethyl group has greater +1 effect than methyl group)

(b) Ethyl amine, n-propyl amine and n-butyl amine.
Answer: n-butyl amine < n-propyl amine < ethyl amine

(c) n-Butane, n -butyl alcohol and n-butyl amine
Answer:
n-butyl alcohol < n-butyl amine < n-butane

Question 28.
Arrange the following compounds in the decreasing order of their boiling points.
(a) Ethane, ethyl amine and ethyl alcohol.
Answer:
Ethyl alcohol < ethyl amine < ethane

(b) Ethyl amine, n-propyl amine and n-butyl amine.
Answer:
n-butyl amine < n-propyl amine < ethyl amine

(c) n-propyl amine, ethyl methyl amine and trimethyl amine.
Answer:
n-propyl amine < ethyl methyl amine < trimethyl amine.

(d) Ethyl alcohol, dimethyl amine and ethyl amine.
Answer:
Ethyl alcohol < ethyl amine < dimethyl amine.

Question 29.
Explain the basic nature of amines with a suitable examples.
OR
Explain why amines are basic.

Question 38.
Tertiary amine (R₃N) or 3° amine is weaker base than secondary amine R₂NH or 2° amine. Explain.
Answer:


The increase in basic strength from 1° amine to 2° amine is explained on the basis of increased stabilization of conjugate acids by +1 effect of the increased number of the alkyl group. However, decreased basic strength of 3° implies that the conjugate acid of 3° amine is less stabilized and is weak base though the +1 effect of three alkyl groups in R₃NH is large.

R₂NH is best stabilized by solvation while the stabilization by solvation is very poor in R₃NH. Hence (R₃N) or tertiary amine or 3° amine is weaker base than secondary amine (R₂NH) or 2° amine.

Question 30.
Primary or aliphatic amine is a stronger base than ammonia. Explain.
Answer:
(1) The alkyl group in primary amines has +I effect i.e. (electron releasing).

The alkyl group tends to increase the electron density on the nitrogen atom. As a result, amines can donate the lone pair of electrons on nitrogen more easily than ammonia.

(2) The amine being a base, can donate a pair of electrons to an acid. The alkyl group with +I effect will disperse the positive charge on the cation more than ammonia.

Due to +I effect of alkyl group cation formed by primary amine is more stable compared to cation formed from ammonia. Also it is seen that observed increasing basic strength from ammonia to primary amine is explained on the basis of increased stabilization of conjugate acids by +I effect for the presence of alkyl (R) groups. Hence, primary or aliphatic amine is a stronger base than ammonia.

Question 31.
Aniline is less basic than ammonia. Explain.
Answer:
The less basic character of aniline can be explained on the basis of resonance shown by aniline.

Due to resonance, the nitrogen atom of amino group in aniline acquires a positive charge, hence, lone pair of electrons is less available for protonation as compared to that of ammonia. Aniline is resonance stabilized by five resonance structures. On the other hand, aniline in aqueous medium, accepts a proton does not have lone pair of electrons on nitrogen to produce a very low concentration of anilium ion and anilium ion shows only two resonance structures and therefore less stabilized than anline.

Thus, aniline is more stable than anilium ion. Hence aniline accepts proton less readily or less basic in nature than ammonia.

Question 32.
Explain the order of basicity in ammonia and aliphatic amines.
Answer:
Since nitrogen atom in ammonia molecule has a lone pair of electrons, it is a Lewis base.
Greater the availability of an electron pair, more is the basic character.

Since alkyl group (R -) is an electron releasing group with (+I) inductive effect, alkyl amines act as a stronger base than ammonia.

The decreasing order of basicity is –

The availability of a lone pair of electrons on a nitrogen atom in amines is influenced by steric factor due to crowding of alkyl groups which affects solvation along with inductive effect of alkyl groups.

Due to high energy of solvation of \(\mathrm{NH}_{4}^{+}\) ions, they acquire higher stability in aqueous solutions.

The presence of alkyl groups in secondary and tertiary amines, due to steric hindrance decrease the solvation energy.

This effect is more in tertiary amines making the tertiary ammonium ions (R₃NH⁺) unstable as compared to secondary ammonium ion (R₂N⁺H₂).
Hence the cumulative effect on the order of basicity of amines is, secondary amine > primary amine > tertiary amine > ammonia (NH₃).

Question 33.
Arrange the following amines in the decreasing order of their basic nature.
(a) Aniline, propan-l-amine and N-methylethanamine.
Answer:
N-methylethanamine < propan-l-amine < aniline

(b) Benzene-1, 4-diamine, ammonia and 4-aminobenzoic acid.
Answer:
Ammonia < benzene-1, 4-diamine < 4-aminobenzoic acid

(c) N-Methylaniline, phenylmethylamine and N-phenylaniline.
Answer:
N-Methylaniline < N-phenylaniline < phenylmethylamine

Question 34.
Arrange the following amines in the increasing order of their pKb values.
(a) Aniline, N-methylaniline and cyclohexalamine.
Answer:

(b) Phenylmethylamine, 2-aminotoluene and 2-fluoroaniline.
Answer:

(c) Aniline, 4-methoxyaniline and 4-nitroaniline.
Answer:

Question 35.
Arrange the following compounds in the decreasing order of their basic nature in the gaseous phase.
Ammonia, N-methylhexanamine, propan-1-amine and N, N-dimethylethanolamine.
Answer:
Propan-1-amine < N-methylethanamine < N,N-dimethylmethanamine < ammonia

Question 36.
Explain laboratory test for amines.
Answer:
(1) All amines are basic compounds. Aqueous solution of water soluble amines turns red litmus blue.

(2) When water insoluble amine is dissolved in aqueous HCl, forms water soluble substituted ammonium chloride, further a substituted ammonium chloride on reaction with excess aqueous NaOH regenerates the original insoluble amine.

(3) Diazotization reaction/ Orange dye test: In a sample of aromatic primary amine, 1-2 mL of cone. HCl is added. The aqueous solution of NaNO₂ is added with cooling. This solution is transfered to a test tube containing solution of β naphthol in NaOH. Formation of orange dye indicates presence of aromatic primary amino group. (It may be noted that temperature of all the solutions and reaction mixtures is maintained near 0 °C throughout the reaction).

Question 37.
Explain Hofmann’s exhaustive alkylation.
OR
Explain Hofmann’s exhaustive methylation of amines.
Answer:
Hofmann’s Exhaustive alkylation : When a primary amine is heated with excess of primary alkyl halide it gives a mixture of secondary amine, tertiary amine along with tetraalkylammonium halide

If excess of alkyl halide is used, tetraalkyl ammonium halide is obtained as major product. The reaction is known as exhaustive alkylation of amines.

Hofmann’s Exhaustive Methylation : The process of converting a primary, secondary or tertiary amine into quaternary ammonium halide by heating them with excess of methyl iodide, is called exhaustive methylation or Hoffmann’s exhaustive methylation.

Thus when methyl amine is heated with excess of methyl iodide it forms dimethylamine (secondary amine), then trimethylamine (a tertiary amine) and finally of quaternary ammonium iodide. The reaction is carried out in the presence of mild base NaHCO₃, to neutralize the large quantity of HI formed.

Question 38.
Predict the products of exhaustive methylation of following compounds.
(1) Ethylamine.
Answer:
A primary amine, ethylamine (CH₃ – CH₂ – NH₂) on exhaustive methylation, i.e., on heating with excess methyl iodide, forms secondary amine, tertiary amine and finally a quaternary ammonium salt, ethyl-trimethyl ammonium iodide.

(2) Benzylamine.
Answer:
Benzylamine C6H5CH2NH2 on exhaustive methylation i.e., on heating with excess methyl iodide forms benzylmethyl amine, benzyldimethyl ammonium chloride and finally benzyltrimethyl ammonium iodide.

Question 39.
Explain Hofmann elimination.
OR
Write a note on Hoffmann elimination.
Answer:
When tetra alkyl ammonium halide is heated with moist silver hydroxide, a quaternary ammonium hydroxide is obtained. Quaternary ammonium hydroxides are deliquescent crystalline solids and are basic in nature. Quaternary ammonium hydroxides on strong heating undergo ^-elimination to give tertiaryamine, alkenes and water, the reaction is called Hofmann elimination. The major product is least substituted alkene.

Question 40.
Write the bond line formula of the alkene which is obtained as major product from the following amines, on heating with excess of methyl iodide followed by strong heating with moist silver oxide.

Answer:

Answer:

Answer:

Question 41.
Compound X with a molecular formula C₅H₁₃N did not react with nitrous acid, but reacted with one mole of CH3I to form a salt. What is the structure of X?
Answer:
The structure of compound X is ethyl-N-methylethanamine since compound X is tertiary amine. It reacts with one mole of CH₃I to give a quaternary ammonium salt.

Question 42.
What is the action of acetyl chloride on :
(1) ethyl amine (ethanamine)
(2) diethyl amine (N-Ethylethanamine)
(3) triethyl amine?
OR
Write a short note on acylation of amines.
Answer:
The reaction of amines with acetyl chloride is called acetylation of amines.

(1) Acetyl chloride on reaction with ethylamine forms monoacetyl derivative, N-ethylacetamide (or N-acetyl ethylamine).

(2) Diethyl amine on reaction with acetyl chloride forms N-acetyl dimethylamine.

(3) Triethyl amine, being a tertiary amine does not have H atom attached to nitrogen of amine, hence it does not react with acetyl chloride.

Question 43.
What is the action of acetic anhydride on aniline?
Answer:
Aniline on reaction with acetic anhydride forms N-phenyl acetamide.

Question 44.
What is the action of benzoyl chloride on ethanamine?
Answer:
When benzoyl chloride is treated with ethanamine, N-ethyl benzamide is obtained.

Question 45.
What is the action of nitrous acid on ethylamine?
Answer:
Ethyl amine on reaction with nitrous acid in cold forms aliphatic diazonium salt, (unstable intermediate), which decomposes immediately by reaction with solvent water to produce ethyl alcohol and nitrogen gas.

Question 46.
What is the action of nitrous acid on aniline?
Answer:
Aniline reacts with nitrous acid in cold to form diazonium salt which has reasonable solubility at 273 K

Question 47.
How is benzenediazon|um chloride prepared?
Answer:
Benzenediazonium chloride is prepared by the action of nitrous acid on aniline at 273-278 K. Nitrous acid being unstable, is prepared in situ by the reaction between sodium nitrite and dilute hydrochloric acid.

Question 48.
Write resonance stabilized structures of aryl diazonium salt.
Answer:

Question 49.
Write a note on Sandmeyer’s reaction.
OR
How is aryl chloride or aryl bromide or aryl cyanide prepared from diazonium salt?
Answer:
[Replacement by Cl^–, Br^– and -CN : Sandmeyer reaction.] Freshly prepared aromatic diazonium salt on reaction with cuprous chloride gives aryl chloride, on reaction with cuprous bromide gives aryl bromide and on reaction with cuprous cyanide give aryl cyanide. The reaction in which copper (I) salts are used to replace nitrogen in diazonium salt is called Sandmeyer reaction.

Question 50.
How is aryl chloride or aryl bromide prepared by Gattermann reactions?
Answer:
The aryl chloride or bromides can also be prepared by Gattermann reactions in which diazonium salt reacts with

Question 51.
How is aryl iodide obtained from diazonium salt?
Answer:
When diazonium salt is warmed with potassium iodide, aryl iodide is obtained.

Question 52.
Explain the reduction of arene diazonium salt?
OR
How is arene obtained from arene diazonium salt?
OR
What is the action of benzene diazonium chloride on ethanol?
Answer:
Arene diazonium salt on treatment with mild reducing agents like phosphinic acid (hypophosphoric acid) or ethanol, arene is obtained.

Question 53.
How is phenol obtained from arene diazonium salt?
Answer:
When arene diazonium salt is slowly added to a large volume of boiling dilute sulphuric acid, phenol is obtained,

Question 54.
How is aryl fluoride obtained from diazonium salt?
Answer:
When fluoroboric acid is treated with the solution of diazonium salt, a precipitate of diazonium fluoroborate is obtained, which is filtered and dried. When dry diazonium fluoroborate is heated, it decomposes to give aryl fluoride. This reaction is called Balz-Schiemann reaction.

Question 55.
How is nitrobenzene obtained from benzene diazonium fluoroborate?
Answer:
When benzene diazonium fluoroborate is heated with aqueous solution of sodium nitrite in the presence of copper powder, nitrobenzene is obtained.

Benzene diazonium fluorobate can be obtained by reaction of benzene diazonium chloride with HBF₄.

Question 56.
What is meant by a coupling reaction? Explain with suitable examples.
OR
What is the action of benzene diazonium chloride on (a) phenol in alkaline medium (b) aniline?
OR
Write a note on the coupling reaction.
Answer:
Diazonium salts react with certain aromatic compounds having an electron-rich group (e.g.-OH, – NH₂, etc.) to form azo compounds. This reaction is an electrophilic substitution and is called coupling reaction. Azo compounds are brightly coloured and are used as dyes and indicators. Coupling reaction is an electrophilic substitution reaction. Benzene diazonium chloride reacts with alkaline solution of phenol to give p-hydroxy azo benzene (orange dye).

Benzene diazonium chloride reacts with aniline in mild alkaline medium to give p-aminobenzene (yellow dye).

Question 57.
What is the action of p-toluene sulphonyl chloride on ethyl amine and diethyl amine?
Answer:
(1) When ethyl amine is treated with p-toluene sulphonyl chloride, N-ethyl p-toluene sulphonamide is obtained.

(2) When diethyl amine is treated with p-toluene suiphonyl chloride. N.N-dicthyl p-toluene suiphonyl amide is formed.

Question 58.
How will you distinguish between :
(1) Ethylamine, diethyl amine and triethyl amine by using (i) nitrous acid (ii) Hinsberg’s reagent.
(2) Diethyl amine and triethyl amine by using acetic anhydride.
Answer:

Question 59.
Give a chemical test to distinguish between following pairs of compounds.
(i) Ethylamine and diethyl amine :
Answer:
Ethylamine (C₂H₅NH₂) is a primary amine while diethyl amine ( (C₂H₅)₂NH) is a secondary amine. So the two can be distinguished by the following test.

(ii) Ethyl amine and aniline :
Answer:
Ethylamine is an aliphatic amine, while aniline is an aromatic amine. So the two can be distinguished by the following test :

(iii) Aniline and benzyl amine :
Answer:

(iv) Aniline and N-ethylaniline :
Answer:

Question 60.
Compound ‘X’ with a molecular formula C₄H₁₁N did not react with Hinsberg’s reagent, but reacted with one mole of CH₃I to form a salt. What is the structure of ‘X’?
Answer:
The structure of compound ‘X’ is :

Since the compound ‘X’ does not react with NaN02 and HC1 i.e. nitrous acid (HO – N = O), it must be a tertiary amine.

The tertiary amine reacts with one mole of CH3I to give a quaternary ammonium salt.

Question 74.

p-(dimethylamino) azobenzene is yellow dye which was formerly used as a colouring agent in margarine. Write the structures of the reactants used in the preparation of this dye.
Answer:

Question 61.
Convert 3-Methyl aniline into 3-nitrotoluene.
Answer:

Question 62.
How will you bring about following conversions?
(1) N.Methyl aniline into N-methyl benzanilide.
Answer:

(2) 1.4-Dichlorobutane Into hexane-1,6-diamlne.
Answer:

(3) Benzene into 3-bromo aniline.
Answer:

(4) Chlorobenzene into 4-chioroanilinc.
Answer:

(5) 11enaniide into toluene.
Answer:

Question 63.
What is the action of aqueous bromine on aniline?
Answer:
Action of aqueous bromine on aniline : When aniline is treated with bromine water at room temperature, a white precipitate of 2, 4, 6-tri bromoaniline is obtained.

Question 64.
Explain the action of cone, nitric acid (nitrating mixture) on aniline.
Answer:
When aniline is warmed with a mixture of cone, nitric acid and cone, sulphuric acid (a nitrating mixture), a mixture of ortho, meta and para nitroaniline is obtained.

Question 65.
What is the action of acetic anhydride on aniline?
Answer:
When aniline is heated with acetic anhydride, an acetanilide is obtained.

Question 66.
How will you convert aniline to p-nltroanhline? (major product)
Answer:

Question 67.
What is the action of cone, sulphuric acid on aniline?
Answer:
Aniline on treatment with cold sulphuric acid forms anilium hydrogen sulphate which on heating with sulphuric acid at 453 K-475 K gives sulphanilic acid, (p-aminobenzene sulphonic acid) as major product.
Sulphanilic acid exists as a salt; called dipolar ion or zwitter ion. It is produced by the reaction between an acidic group and a basic group present in the same molecule.

Question 68.
How will you convert the following?
(1) Ethylamine to ethyl alcohol.
Answer:

(2) N-Methyl aniline to N-Nitroso-N-methyl aniline.
Answer:

(3) Diethylamine to N-nitrosodiethylamine
Answer:

(4) Triethylamine to triethyl ammonium nitrite.
Answer:

(5) Ethyl amine to N-ethylacetamide.
Answer:

(6) Diethyl amine to N-acetyl diethylamine.
Answer:

(7) Aniline to acetanilide.
Answer:

(8) Aniline to N-ethyl henzamide.
Answer:

(9) Ethylamine to ethyl isocyanide.
Answer:

(10) Aniline to phenyl isocyanide.
Answer:

(11) Aniline to 2,4,6-tribromoaniline.
Answer:

Question 69.
Give a plausible explanation for each of the following statements :
(1) Ethylamine is soluble in water whereas aniline is not.
Answer:
Ethylamine is soluble in water due to intermolecular hydrogen bonding resulting in the formation of C₂H₅NH₃ ion. Whereas in anline the hydrogen bonding with water is negligible due to the phenyl group (C₆H₅) is bulky and has -I effect. Therefore, aniline is nearly insoluble in water.

(2) Butan-1-ol is more soluble in water than butani-amine.
Answer:
Rutan- l-al is more soluble in watcr duc to intermoiccular hydrogen bonding. In alcohols, hydrogen bonding is through oxygen atoms. WIereas hutani-amine is less soluble in water due to the larger hydrocarbon part is hydrophobic in nature. Hence, butan-l-ol is more soluble in water than butani-amine.

(3) Butan-1-amlne has higher boiling point than N-ethylethanamine.
Answer:
Due to the presence of two H-atoms on N-atom in butait- I -amine, they undergo extensive intermolecular H-bonding while in N-cthylethanamine due to the presence of one-H atom on the N-atom, they undergo least intermolecular H-bonding. Hence, butan- l-amine has higher boiling point than-N-ethyl ethanamine.

(4) AnIline Is less basic than ethyl afine.
Answer:
Aniline (K_b4-2 x 10^-10) is less basic than ethyl amine (K_b5.1 x 10^-4). This is because -I effect of phenyl group in aniline as compared to + 1 effect of ethyl group in ethyl amine.

Due to resonance, the lone pair of electrons on the nitrogen atom gets delocalized over the benzene ring and thus less available for protonation. On the other hand, in ethyl anine, delocalization of the lone pair of electrons on the nitrogen atom by resonance is not possible. Further more, the electron density on the nitrogen atom is increased by +1 effect of the ethyl group. Hence, aniline is less basic than ethyl amine.

(5) pK_b value of diethyl amine is less than that of ethyl amine.
Answer:
The basic strength of amines is expressed in terms of pK_b values. Smaller is the value of pK_b more basic is the amine. The pK_b value of ethyl amine is 3.29 and that of diethyl amine is 3.00. Therefore, diethyl amine is more basic than ethyl amine.

(6) Aniline cannot be prepared by Gabriel phthalimide synthesis.
Answer:
In Gabriel-phthalimide synthesis of aniline, potassium phthalimide requires the treatment with chlorobenzene or bromobenzene. Since aryl halides do not undergo nucleophilic substitution reaction. Therefore, chlorobenzene or bromobenzene does not react with potassium phthalimide to give N-phenylphthalimide and hence aniline cannot be prepared by Gabriel phthalimide synthesis.

(7) Gabriel phthalimide synthesis is preferred for the preparation of aliphatic primary amines.
Answer:
In aromatic amines, the lone pair of electrons on the N-atom is delocalized over the benzene ring. As a result electron density on the nitrogen atom decreases. Whereas in aliphatic primary amines, due to +1 effect of alkyl group, electron density on nitrogen atom increases. As the pKh value of aliphatic amines is more than that of aromatic amines, aromatic amines are less basic than primary aliphatic amines. Hence, Gabriel phthalimide synthesis is preferred for the preparation of aliphatic amines.

(8) Arere diazonium salts are relatively more stable than alkyl diazonium salts.
Answer:
Arene diazonium salts are stable due to the dispersal of the positive charge over the benzene ring as shown below :

Alkane diazonium salts are unstable due to their tendency to eliminate a stable molecule of nitrogen to form carbocation. Aromatic diazonium salts have much lower tendency to remove nitrogen than aliphatic diazonium salts. Hence, arene diazonium salts are relatively more stable than alkyl diazonium salts.

(9) Tertiary amines cannot be acylated.
Answer:
Tertiary amines do not react with acetic anhydride or acetyl chloride i.e. they can be acylated because they do not contain a H-atom on the N-atom.

(10) Besides the ortho and para derivatives, considerable amount of meta derivatives is also formed during nitration of aniline.
OR
Although amino group is o- and p-directing in electrophilic substitution reactions, aniline on nitration gives substantial amount of m-nitroaniline.
Answer:
In aromatic amines, -NH₂ is an electron releasing or activating group. It activates the ortho and para positions in the benzene ring towards electrophilic substitution. When aniline is treated with nitrating mixture (cone. HNO₃+ cone. H₂SO₄), a mixture of ortho and para nitroaniline is obtained. However, a substantial amount of m-nitroaniline is also formed. Aniline being a base gets protonated in acidic medium to form anilium cation, which deactivates the ring and the substitution takes place at the meta position.

Question 70.
How will you convert :
(1) Aniline into benzyl alcohol.
Answer:

(2) Aniline into 4-bromoaniline.
Answer:

(3) Aniline into 1,3,5-tribromo benzene.
Answer:

(4) Aniline into 2,4,6-tribromo fluoro benzene.
Answer:

Question 71.
How will you convert :
(1) Propanoic acid into ethanoic acid.
Answer:

(2) Propanoic acid into ethanol
Answer:

(3) Ethanamine into propan-l-amine.
Answer:

(4) Propan-l-amine into ethanamine.
Answer:

(5) Propanoic acid into ethanamine.
Answer:

(6) Ethanamine into propanoic acid.
Answer:

(7) Benzene to aniline.
Answer:

(8) Aniline to Benzene.
Answer:

(9) Aniline into benzoic acid.
Answer:

(10) Benzoic acid into aniline.
Answer:

(11) Aniline into benzamide.
Answer:

(12) 3-Nitrotoluene into 3-methyl aniline.
Answer:

(13) 3-Methyl aniline into 3-Nitrotoluene.
Answer:

Question 72.
An organic compound ‘A’ having molecular formula C₂H₆O evolves hydrogen gas on treatment with sodium metal and on treatment with red phosphorous and iodine gives compound ‘B’. The compound ‘B’ on treatment with alcoholic KCN and on subsequent reduction gives compound ‘C’. The compound ‘C’ on treatment with nitrous acid evolves nitrogen gas. Write the balanced chemical equations for all the reactions involved and identify the compounds ‘A’, ‘B’ and ‘C;.
Answer:
A = C₂H₅OH ethanol
B = C₂H₅I ethyl iodide
C = C₂H₅CH₂NH₂ n-propyl amine
Compound C₂H₆O = C₂H₅OH

Question 73
Identify B, C and D write complete reactions :

Answer:

Question 74.
Identify the compounds B, C and D in the following series of reactions and rewrite the complete equations :

Answer:

Question 75.
Identify the compounds ‘A’ and ‘B’ in the following equation :

Answer:

Question 76.
Answer in one sentence :

(1) Arrange the following compounds in decreasing order of basic strength in their aqueous solutions. NH₃, C₂H₅NH₂, (CH₃)₂NH, (CH₃)₃N
Answer:
The decreasing order of basic strength is – (C₂H₅)₂NH > (C₂H₅)₃N > (C₂H₅)₂NH > NH₃
(The reason that ethyl group has greater +1 effect than methyl group).

(2) Arrange the following compounds in an increasing order of their solubility in water.

Answer:
The solubility increases in order in which molecular mass decreases.

(3) What is Hinsberg’s reagent?
Answer:
Benzenesulphonyl chloride (C₆H₅SO₂Cl) is known as Hinsberg’s reagent.

(4) Name the reaction in which a primary amine is formed from amide.
Answer:
Hoffmann bromamide degradation.

(5) NH₃ is a Lewis base.
Answer:
Since nitrogen in ammonia molecule has a lone pair of electrons, it is a Lewis base.

(6) How many primary amines are possible for the compound C₃H₉N?
Answer:
For the compound C₃H₉N, two primary amines are possible.

(7) State the hybridization of the nitrogen atom in amines.
Answer:
The hybridization of nitrogen atom in amines is sp³.

(8) Arrange the following compounds in an increasing order of basic strength. Aniline, p-nitroaniline, p-toluidine.
Answer:
p-nitroaniline < aniline < p-toluidine.

(9) Which of the two is more basic and why? CH₃NH₂ or NH₃
Answer:
Due to +1 effect of -CH₃ group, electron density on N-atom increases, hence methyl amine is a stronger base than ammonia.

(10) Which of the two is more basic and why? p-toluidine or aniline.
Answer:
p-toluidine is more basic due to the presence of -CH₃ group at para position. Due to +1 effect of -CH₃ group, electron density on nitrogen increases, hence the tendency to donate pair of electrons increases.

Multiple Choice Questions

Question 77.
Select and write the most appropriate answer from the given alternatives for each subquestion :

1. Which of the following is an amine?
(a) C₂H₅N(COCH₃)₂
(b) (C₂H₅)₂N – N = 0
(c) (C₂H₅)₃N
(d) All of these
Answer:
(d) All of these

2. N-methyl-N-ethyl-n-propyl amine is
(a) a primary amine
(b) a secondary amine
(c) a tertiary amine
(d) an alkyl nitrile
Answer:
(c) a tertiary amine

3. Which of the following is a tertiary amine?

Answer:
(d)

4. Tertiary butyl amine is a
(a) primary amine
(b) secondary amine
(c) tertiary amine
(d) quaternary ammonium salt
Answer:
(a) primary amine

5. The IUPAC name of

(a) ethyl propanamine
(b) ethyl butylamine
(c) 2-pentanamine
(d) 3-hexanamine
Answer:
(d) 3-hexanamine

6. The IUPAC name of ethyl dimethyl amine is ……………..
(a) 2-amino propane
(b) N,N-dimethyl ethanolamine
(c) ethyl methanamine
(d) propanamine
Answer:
(b) N,N-dimethyl ethanolamine

7. Isopropyl amine and trimethyl amine are ……………..
(a) acidic in nature
(b) electrophilic compounds
(c) structural isomers
(d) optically active compounds
Answer:
(c) structural isomers

8. N, N-dimethylethanolamine is ……………

Answer:
(b)

9. IUPAC name of diethylmethyl amine is ………………
(a) methyl amino propane
(b) N-Ethyl-N-methylhexanamine
(c) methyl diethanamine
(d) amino pentane
Answer:
(b) N-Ethyl-N-methylhexanamine

10. Ethyl bromide reacts with excess of alcoholic ammonia, the major product is …………..
(a) ethyl amine
(b) diethylamine
(c) triethylamine
(d) tetraethyl ammonium bromide
Answer:
(a) ethyl amine

11. Isopropylamine is obtained by the reduction of
(a) acetoxime
(b) acetaldoxime
(c) formaldoxime
(d) aldoxime
Answer:
(a) acetoxime

12. Which of the following compounds can be converted into amines in the presence of Na and alcohol?
(a) Alkyl nitriles
(b) Aldoxime
(c) Ketoxime
(d) All of these
Answer:
(d) All of these

13. Chloroethane when boiled with excess of aqueous-alcoholic ammonia gives hydrochloric acid and
(a) triethyl amine
(b) trimethyl amine
(c) diethyl amine
(d) ethyl amine
Answer:
(d) ethyl amine

14. How many hydrogen atoms are required for the reduction of 1-nitropropane to n-propyl amine?
(a) Four
(b) Three
(c) Six
(d) Two
Answer:
(c) Six

15. A secondary alkyl halide is heated with excess of ammonia, the major product obtained is
(a) primary amine
(b) secondary amine
(c) tertiary amine
(d) quaternary ammonium salt
Answer:
(a) primary amine

16. The true statement about ethylamine is
(a) it is weaker base than ammonia
(b) it is stronger base than diethyl amine
(c) it is stronger base than triethyl amine
(d) it is stronger base than alkali
Answer:
(c) it is stronger base than triethyl amine

17. The reaction which is given only by primary amines is
(a) acetylation
(b) alkylation
(c) reaction with HNO₂
(d) carbyl amine test
Answer:
(d) carbyl amine test

18. The amine which reacts with NaNO₂ and dil. HCl to give yellow oily compound is
(a) ethylamine
(b) isopropylamine
(c) sec-butylamine
(d) dimethylamine
Answer:
(d) dimethylamine

19. The name of the compound ‘C’ in the following series of reactions, is
(a) propan-l-ol
(b) propan-2-ol
(c) butan-l-ol
(d) butan-2-ol
Answer:
(b) propan-2-ol

20. Triethylamine when treated with nitrous acid gives
(a) an alcohol
(b) a nitrosamine
(c) a monoacetyl derivative
(d) a soluble nitrite salt
Answer:
(d) a soluble nitrite salt

21. Ammes are basic in nature because
(a) of the nitrogen atom contain or lone pair of electrons
(b) they give H+ ions in aqueous medium
(c) they form quaternary ammonium salts when heated with acids
(d) both (a) and (c)
Answer:
(a) of the nitrogen atom contain or lone pair of electrons

22. An aqueous solution of primary amine contains

Answer:
(d)

23. The basic nature of amines in an aqueous solution is in the order of
(a) tert. > sec. > pri.
(b) sec. > pri. > tert.
(b) pri. > sec. > tert.
(d) pri. > tert. > sec.
Answer:
(b) pri. > sec. > tert.

24. In trimethyl ammonium ion, the number of sigma bonds attached to nitrogen are
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3

25. The number of coordinate bond/bonds in a trialkyl ammonium ion is
(a) one
(b) two
(c) three
(d) four
Answer:
(a) one

26. The number of electrons in the valence shell of nitrogen in methyl amine is
(a) 5
(b) 3
(c) 8
(d) 7
Answer:
(c) 8

27. Ethanamine reacts with excess of acetyl chloride to form
(a) C₂H₅NHCOCH₃
(b) C₂H₅N(CH₃)₂
(c) C₂H₅N(COCH₃)₂
(d) C₂H₅N+H₃Cl
Answer:
(c) C₂H₅N(COCH₃)₂

28. The compound used for acylation of amine is
(a) (CH₃CO)₂O
(b) CH₃COOH
(c) CH₃COCl
(d) both (a) and (c)
Answer:
(d) both (a) and (c)

29. Dimethyl amine reacts with acetyl chloride to give
(a) N-acetyl methyl amine
(b) N-acetyl ethyl amine
(c) N-acetyl dimethyl amine
(d) N-acetyl diethyl amine
Answer:
(c) N-acetyl dimethyl amine

30. Identify ‘A’ in the following reaction :

Answer:
(c)

31. n-propyl alcohol is obtained when HNO₂ is treated with

Answer:
(c)

32. A mixture of CH₃NH₂, (CH₃)₂NH, (CH₃)₃N can be distinguished by using
(a) HCI
(b) HNO₂
(c) HNO₃
(d) H₂SO₄
Answer:
(b) HNO₂

33. In the acetylation reaction the H-atom of an amine is replaced by
(a) a carbonyl group
(b) an alkyl group
(c) an acetyl group
(d) an imino group
Answer:
(c) an acetyl group

34. Amines are basic in nature
(a) as they have a fishy odour
(b) as they form quaternary ammonium salts with alkyl halides
(c) due to the presence of an unshared pair of electrons on the nitrogen atom
(d) all of these
Answer:
(c) due to the presence of an unshared pair of electrons on the nitrogen atom

35. The correct order of increasing basic strength is
(a) NH₃ < CH₃NH₂ < (CH₃)₂NH
(b) CH₃NH₂ < (CH₃)₂NH < NH₃
(c) CH₃NH₂ < NH₃ < (CH₃)₂NH
(d) (CH₃)₂NH < NH₃ < CH₃NH₂
Answer:
(a) NH₃ < CH₃NH₂ < (CH₃)₂NH

36. Which of the following is the strongest base?

Answer:
(d)

37. Identify the weakest base amongst the following :
(a) p-methoxyaniline
(b) o-toluidine
(c) benzene-1, 4-diamine
(d) 4-aminobenzoic acid
Answer:
(d) 4-aminobenzoic acid

38. Amine that cannot be prepared by Gabriel phthalimide synthesis is
(a) aniline
(b) benzyl amine
(c) methyl amine
(d) iso-butyl amine
Answer:
(a) aniline

39. Which of the following exist as Zwitter ion?
(a) Salicylic acid
(b) Suphanilic acid
(c) p-Aminophenol
(d) p-Amino acetophenone
Answer:
(b) Suphanilic acid

40. Reduction of benzene diazonium chloride with Zn/HCl gives
(a) phenyl hydrazine
(b) hydrazine hydrate
(c) aniline
(d) ozo benzene
Answer:
(c) aniline

41. When primary amine reacts with CHCl₃ in alcoholic KOH, the product is
(a) aldehyde
(b) alcohol
(c) cyanide
(d) an isocyanide
Answer:
(d) an isocyanide

42. Which of the following amines cannot be prepared by Gabriel phthalimide synthesis?
(a) sec-Propylamine
(b) tert-Butylamine
(c) 2-Phenylethylamine
(d) N-Methyl benzyl amine
Answer:
(d) N-Methyl benzyl amine

43. Which of the following compounds has highest boiling point?
(a) Ethane
(b) Ethanoic acid
(c) Ethanol
(d) Ethanamine
Answer:
(b) Ethanoic acid

44. Identify the statement about the basic nature of amines.
(a) Alkylamines are weaker bases than ammonia.
(b) Arylamines are stronger bases than alkylamines.
(c) Secondary aliphatic amines are stronger bases than primary aliphatic amines.
(d) Tertiary aliphatic amines are weaker bases than arylamines.
Answer:
(c) Secondary aliphatic amines are stronger bases than primary aliphatic amines.

45. The compounds ‘A’, ‘B’ and ‘C’ react with methyl iodide to give finally quaternary ammonium iodides. Only ‘C’ gives carbylamines test while only ‘A’ forms yellow oily compound on reaction with nitrous acid. The compounds ‘A’, ‘B’ and ‘C’ are respectively.
(a) butan-1-amine, N-ethylethanamine and
N, N-dimethylethanamine.
(b) N-ethylethanamine, N, N-dimethylethanamine and butan-1 – amine.
(c) N, N-dimethylethanamine, N-ethylethanamine and butan-1-amine.
(d) N-ethylethanamine, butan-1-amine and N-ethylethanamine.
Answer:
(b) N-ethylethanamine, N, N-dimethylethanamine and butan-1 – amine.

46. Which of the following amines is most basic in nature?
(a) 2, 4-Dichloroaniline
(b) 2, 4-Dimethylaniline
(c) 2, 4-Dinitroaniline
(d) 2, 4-Dibromoaniline
Answer:
(b) 2, 4-Dimethylaniline

47. How many moles of methyl iodide are required to convert ethylamine, diethylamine and triethylamine into quaternary ammonium salt, respectively?
(a) 1, 2 and 3
(b) 2, 3 and 1
(c) 3, 2 and 1
(d) 3, 1 and 2
Answer:
(c) 3, 2 and 1

48. Which of the following amines does not undergo acetylation?
(a) t-Butylamine
(b) Ethylamine
(c) Diethylamine
(d) Triethylamine
Answer:
(d) Triethylamine

49. n-Propylamine can be prepared by catalytic reduction of
(a) n-propyl cyanide
(b) propionaldoxime
(c) acetoxime
(d) nitroethane
Answer:
(b) propionaldoxime

50. Identify the compound ‘B’ in the following series of reactions :

Answer:
(c)

51. Chloropicrin is used as
(a) antiseptic
(b) antibiotic
(c) insecticide
(d) anaesthetic
Answer:
(c) insecticide

52. Identify the compound B in the following series of reactions.
(a) n-propyl chloride
(b) propanamine
(c) n-propyl alcohol
(d) Isopropyl alcohol
Answer:
(c) n-propyl alcohol

53. Which of the following amines yields foul smelling product with haloform and alcoholic KOH?
(a) Ethyl amine
(b) Diethyl amine
(c) Triethyl amine
(d) Ethyl methyl amine
Answer:
(a) Ethyl amine

54. Which of the following compounds is NOT prepared by the action of alcoholic NH₃ on alkyl halide?
(a) CH₃NH₂
(b) CH₃-CH₂-NH₂
(c) CH₃ – CH₂ – CH₂ – NH₂
(d) (CH₃)₃CNH₂
Answer:
(d) (CH₃)₃CNH₂

Balbharti Maharashtra State Board 12th Chemistry Important Questions Chapter 8 Transition and Inner Transition Elements Important Questions and Answers.

Maharashtra State Board 12th Chemistry Important Questions Chapter 8 Transition and Inner Transition Elements

Question 1.
What are d-block elements? Give their general electronic configuration.
Answer:
Definition : d-block elements are defined as the elements in which the differentiating electron enters d-orbital of the penultimate shell i.e. (n – 1) d-orbital where ‘n is the last shell.

The general electronic configuration can be represented as, (n – n) d^{n – 10}, ns^{n – 2}

Question 2.
What is the position of the transition elements in the periodic table?
Answer:
The transition elements are placed in periods 4 to 7 and groups 3 to 12 of the periodic table.

Question 3.
In which block of the modern periodic table are the transition elements placed?
Answer:
Transition elements are placed in d-block of the modern periodic table.

Question 4.
Why are most of the d-block elements called transition elements?
Answer:

• d-block elements have electronic configuration,(n – n) d^{n – 10}, ns^{l – 2}. They are all metals.
• In the periodic table, they are placed between the ,s-block and p-block elements, i.e., in the groups between 2 and 13.
• They show characteristic properties which are intermediate between those of the elements of s-block and p-block.
• Hence, they show a transition in the properties from those of the most electropositive .v-block elements and less
• electropositive (or electronegative) p-block elements.
• Therefore, most of the d-block elements are called transition elements.

Question 5.
How many series of d-block elements are present in the long-form periodic table? Give their general electronic configuration.
Answer:
There are four series of d-block elements which are placed between 5 and p-block elements in the long-form periodic table as follows :

d-series	Period	Electronic configuration
(1) 3d-series	fourth	[Ar] 3d1 – 10, 4s1 – 2
(2) 4d-series	fifth	[Kr] 4d1 – 10, 5s1 – 2
(3) 5d-series	sixth	[Xe] 4f14 5d1 – 10 6s1 – 2
(4) 6d- series	seventh	[Rn] 5f14 6d1 – 10 7s2

Modern periodic table :

Question 6.
Represent the elements in the four series of transition elements.
Answer:

Question 7.
In which period of the periodic table, will an element, be found whose differentiating electron is a 4d-electron?
Answer:
An element whose differentiating electron is a 4d-electron will be present in fifth period of the periodic table.

Question 8.
Write the condensed electronic configuration of each series of transition elements.
Answer:
Condensed Electronic Configuration of Transition Elements

Question 9.
Write expected and observed electronic configuration of 3d-series block elements.
Answer:
Electronic configuration of 3d-series of d-block elements

Question 10.
Explain why transition elements with electronic configuration 3d44s2 and 3d94s2 do not exist.
Answer:
(1) d-orbitals are degenerate orbitals and they acquire extra stability when half-filled (3d⁵) or completely filled (3d¹⁰). Hence 3d⁴ and 3d⁹ electronic configurations are less stable.
(2) The energy difference between 3d and 4.s’ subshells is very low, hence there arises a transfer of one electron from 45 orbital to 3d orbital.
The electronic configuration changes as,
3d⁴, 4s² → 3d⁵ 4s¹
3d⁹, 4s² → 3d¹⁰ 45¹
Therefore transition elements, with electronic configurations 3d⁴, 4s² and 3d⁹, 4s² do not exist.

Question 11.
Write observed electronic configuration of elements from first transition series having half-filled d-orbitals.
Answer:
There are two elements namely Cr and Mn which have half-filled d-orbitals.
₂₄Crls²2s²2p⁶3s²3p⁶3d⁵4s¹
₂₅Mnls²2s²2p⁶3s²3p⁶3d⁵4s²

Question 12.
Explain the variable oxidation states of metals of first transition series.
Answer:

• The transition metals (or, elements) exhibit variable oxidation states due to their electronic configuration, (n – 1) d^{1 – 10} ns^{1 – 2} for the first row.
• They show only positive oxidation states due to loss of electrons from outer 45-orbital and the penultimate 3rf-orbital.
• Loss of one 45 electron forms M+ ion. Loss of two 45 electrons form M²⁺ ion.
• +2 is the common oxidation state of these elements.
• Higher oxidation states are due to loss of 3 d-electrons along with 45 electrons.
• As the number of unpaired electrons increases, the number of oxidation states shown by the element also increases.
• Sc has only one unpaired electron and it shows two oxidation states ( + 2 and + 3)
• Mn with 5 unpaired d electrons show six different oxidation states. They are +2, +3, +4, +5, +6 and + 7. Thus Mn has the highest oxidation state.
• From Fe onwards variable oxidation states decreases as the number of unpaired electron decreases.
• The last element in the series, Zn shows only one oxidation state ( + 2).

Question 13.
Show different oxidation states of 3d-series of transition elements.
Answer:
The following table shows, different oxidation states of 3d-series of transition elements.

Question 14.
Write oxidation states and outer electronic configuration of first transition series elements.
Answer:
Oxidation states of first transition series elements

Question 15.
Zinc shows only one oxidation slate. Explain.
Answer:

• The electronic conliguration of zinc is, ₃₀Zn Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹⁰ 4s² or [Ar] 3d¹⁰ 4s².
• Due lo loss of two electrons from 4s suhshell Zn shows oxidation state +2. with elcctronic configuration. [Ar] ¹⁸3d¹⁰.
• Since Zn⁺² acquires an extra stability of completely fIlled 3d¹⁰ orbital. it shows only one oxidation state + 2.

Question 16.
Why is manganese more stable in the + 2 state than the + 3 state and the reverse is true for iron?
Answer:

• The electronic configuration of Mn is ₂₅Mn [Ar] 3d⁵ 4s²
• In + 2 and + 3 oxidation states, the electronic configuration of Mn is, Mn²⁺ [Ar] 3d⁵ and Mn³⁺ [Ar] 3d⁴
• Since half-filled d-orbital (3d⁵) has more stability and lower energy than 3d⁴, Mn²⁺ is more stable than Mn³⁺.
• The electronic configuration of Fe is ₂₆Fe [Ar] 3d⁶ 4s² In + 2 and + 3 oxidation states of Fe, the electronic configuration is, Fe²⁺ [Ar] 3d⁶ and Fe³⁺ [Ar] 3d⁵ Since half-filled orbital is more stable, + 3 state of Fe is more stable than + 2 state.

Question 17.
What are the electronic configurations of various ions of 3d-elements?
Answer:
Electronic configuration of various ions of 3d elements

Question 18.
Scandium shows only two oxidation states. Explain.
Answer:
Scandium has electronic configuration, ₂₁Sc : Is², 2s², 2p⁶, 3s², 3p⁶, 3d¹, 4s² Sc shows only two oxidation states namely + 2 and + 3.

• Due to the loss of two electrons from the 4s-orbital, Sc acquires + 2 oxidation state Sc^{2 +} : Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹.
• Due to the loss of one more electron from the 3d-orbital, it acquires + 3 oxidation state with the extra stability of an inert element ₁₈Ar. Sc⁺³ : Is² 2s² 2p⁶ 3s² 3p⁶.
• Since Sc³⁺ acquires extra stability of inert element [Ar]¹⁸, it does not form higher oxidation state.

Question 19.
Write different oxidation states of iron.
OR
Write the electronic configurations of
(i) Fe
(ii) Fe²⁺ and
(iii) Fe³⁺.
Answer:
Oxidation states of iron are +2, +3, +4, +5, +6.
(i) ₂₆Fe : ls²2s²2p⁶3s²3p⁶3d⁶4s²
(ii) Fe²⁺ : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁶
(iii) Fe³⁺ : Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁵.

Question 20.
Explain different oxidation states of chromium.
Answer:

• The observed electronic configuration of chromium is, ₂₄Cr [Ar] 3d⁵ 4s¹.
• Different possible oxidation states of Cr are 4-1 (3d⁵), + 2 (3d⁴), + 3 (3d³), + 4 (3d²), + 5 (3d¹) and + 6 (3d°).
• Although in + 1 state, Cr gets extra stability of half-filled 3d⁵-orbital, it does not exhibit + 1 state in common except with pyridine.
• Cr⁺² has few stable salts like CrCl₂, CrSO₄ while Cr⁺³ forms very stable salts like CrCl₃.
• Cr⁺⁴ and Cr ^{+ 5} are unstable oxidation states.
• Cr⁺⁶ is the most stable state due to inert gas [Ar] electronic configuration and form the salts like K₂Cr₂O₇.

Question 21.
Manganese shows variable oxidation states. Give reasons.
Answer:

• Manganese (₂₅Mn) has electronic configuration. ₂₅Mn [Ar]¹⁸ 3d⁵ 4s².
• Mn has stable half-filled d-subshell.
• Due to a small difference in energy between 3d and 4s-orbitals, Mn can lose or share electrons from both the orbitals, hence shows variable oxidation states.
• Mn shows oxidation states ranging from + 2 to + 7.

Question 22.
Write the different oxidation states of manganese. Why is + 2 oxidation state of manganese more stable than Mn³⁺?
Answer:

• The different oxidation states of Mn are +2, +3, +4, +5, + 6 and +7.
• The electronic configuration of Mn is Is² 2s² 2p⁶ 3s² 3p⁶ 3d⁵ 4s²
• + 2 oxidation state is very stable due to higher stability of half-filled 3d orbital.
• Mn³⁺ has electronic configuration, ls²2s² 2p⁶3s²3p⁶3d^A which is less stable.

Question 23.
Write the physical properties of first transition series.
Answer:
Physical properties of first transition series :

• All transition elements of the first series are metals.
• Except Zn, they are very hard and have low volatility.
• They show characteristic properties of metals. They are lustrous, malleable and ductile.
• They are good conductors of heat and electricity.
• They have high melting points and boiling points.
• Except Zn and Mn, they have one or more typical metallic structures at normal temperatures.

Question 24.
Which elements in the transition elements, 3d-series has
(i) the lowest density
(ii) the highest density?
Answer:
In 3d transition elements,
(i) Scandium (Sc) has lowest density and
(ii) Zinc (Zn) has the highest density.

Question 25.
Explain the variation in density of d-block elements.
Answer:
The densities of d-block elements are higher than 5-block elements due to higher nuclear charge which results in reduction in atomic size.

Question 26.
Explain the variation in melting points of the transition elements.
Answer:

1. All transition elements are metals and the strength of metallic bonding increases as the number of unpaired electrons increases.
2. In transition elements as atomic number increases, the number of unpaired electrons increases from (n – 1)d¹ to (n – 1 )d⁵.
   For example in 3d-series, melting points increase from ₂₁Sc to ₂₄Cr in 4d-series from ₃₉Y to ₄₂Mo, and in 5d-series from ₇₂Hf to ₇₄W.
3. After (n – l)d⁵ electronic configuration, the electrons start pairing, hence the number of unpaired electrons decrease, hence metallic character, melting points decrease from (n-1 )d6 to (n – 1)d¹⁰.
4. In all transition series the melting point increases steadily up to d⁵ configuration and after this melting point decreases regularly.
   

Question 27.
The first ionisation enthalpies of third transition series elements are much higher than those of the elements of first and second transition series. Explain.
Answer:

1. Third transition series elements have electronic configuration, 4f¹⁴ 5d^{1 – 10} 6s².
2. Thus, atoms of third series elements possess filled 4f-orbitals.
3. 4f-orbitals due to their diffused shape, exhibit poor shielding effect and give rise to lanthanide contraction. Hence the valence electrons experience greater nuclear attraction and greater amount of energy is required to ionise the elements of third transition series namely (H_f to Au).
4. Therefore the ionisation enthalpies of third transition series elements are much higher than those of the first and second transition series.

Question 28.
Explain the metalic character of transition metals.
Answer:

• All the transition elements are metals.
• They are hard, lustrous, malleable, ductile and they have high tensile strength.
• They have high melting points and boiling points.
• Their metallic character is due to vacant or partially filled (n – 1) d-orbitals, and they involve both metallic and covalent bonding.
• Since the strength of metallic bonds depends upon the number of unpaired electrons, it increases up to middle i.e., up to (n – 1 )d⁵, hence accordingly melting points and boiling points also increase.
• After (n – l)d⁵ configuration, the electrons start pairing, hence the metallic strength, melting points and boiling points decrease with the increase in atomic number.

Question 29.
How does metallic character vary in 3d transition elements?
Answer:

1. In 3d-series elements as atomic number increases from scandium (Sc [Ar]¹⁸ 3d¹ 4s²) the number of unpaired electrons increases up to 3d⁵ in chromium.
2. As the number of unpaired electrons increases, the metallic character increases, hence the melting points and boiling points increase from ₂₁Sc(3d¹) to ₂₄Cr (3d⁵).
3. After chromium the number of unpaired electrons goes on decreasing due to the pairing of electrons, hence metallic character, melting points and boiling points decrease from ₂₅Mn to ₂₉Cu.
4. Zinc has all electrons paired, hence it is soft, has a low melting and boiling points.

Question 30.
Which are the common arrangement of the atoms in the structure of transition metals?
Answer:
Most of the transition metals have simple hexagonal closed packed (hep), cubic closed packed (ccp) or body centred cubic (bcc) lattices.

Question 31.
Why do the compounds of transition metals exhibit magnetic properties?
Answer:
The compounds of transition metals exhibit magnetic properties due to the presence of unpaired electrons in their atoms or ions.

Question 32.
What is the cause of paramagnetism and ferromagnetism?
Answer:
Paramagnetism and ferromagnetism is due to the presence of unpaired electrons in species.

Question 33.
When does species become diamagnetic?
Answer:
When there is no unpaired electron, i.e. all electron spins are paired, the species become diamagnetic.

Question 34.
How do metals Fe, Co, Ni acquire permanent magnetic moment?
Answer:
The transition metals Fe, Co and Ni are ferromagnetic. When the magnetic field is applied, all the unpaired electrons in these metals (and their compounds) align in the direction of the applied magnetic field. Due to this the magnetic susceptibility is enhanced and these metals can be magnetised, that is, they acquire permanent magnetic properties.

Question 35.
In which oxidation state, is vanadium diamagnetic?
Answer:

• The electronic configuration of vanadium is, ₂₃V [Ar] 3d³ 4s².
• In +5 oxidation state, the electronic configuration is, V⁵⁺ [Ar].
• Since in V⁵⁺ state, vanadium has all electrons paired, it is diamagnetic.

Question 36.
How is a magnetic moment expressed?
Answer:
The magnetic moment is expressed in Bohr magneton (B.M.). It is denoted by μ.

Question 37.
What is Bohr magneton (B.M.)?
Answer:
Bohr magneton (B.M.) is a unit of magnetic moment :
\(1 \mathrm{~B} . \mathrm{M} .=\frac{e h}{4 \pi m_{\mathrm{e}} c}\)
where, h : Planck’s constant (h = 6.626 x 10^-34 Js)
e : electronic charge (1.60218 x 10^-19 C)
me : mass of an electron (9.109 x 10^-31 kg)
c : velocity of light. (2.998 x 10⁸ ms^-1)

Question 38.
Explain the magnetic properties of transition (or d-block) elements.
Answer:

• Most of the transition metal ions and their compounds are paramagnetic in nature due to the presence of one or more unpaired electrons in their (n – 1)d-orbitals. Hence they are attracted in the magnetic field.
• As the number of unpaired electrons increases from 1 to 5 in J-orbitals, the paramagnetic character and magnetic moment increase.
• The transition elements or their ions having all electrons paired are diamagnetic and they are repelled in the magnetic field.
• Metals like Fe, Co and Ni possess very high paramagnetism and acquire permanent magnetic moment hence they are ferromagnetic.

Question 39.
Explain the effective magnetic moment of the species.
Answer:

• The magnetic moment in the species arises due to the presence of unpaired electrons.
• The magnetic moment depends upon the sum of orbitals and spin contribution for each unpaired electron present in the species.
• In transition metal ions, the contribution of orbital magnetic moment is suppressed by the electrostatic field of other atoms, molecules or ions surrounding the metal ion in the compound.
• Hence the net or effective magnetic moment arises mainly due to spin of electrons. The effective magnetic moment μ_eff, of a paramagnetic substance is given by 1 spin only’ formula represented as, \(\mu=\sqrt{n(n+2)}\) B.M. where n is the number of unpaired electrons.

Question 40.
What is the importance of magnetic moment (μ)?
Answer:

• From the measurements of the magnetic moment (μ) of the species or metal complexes of the first row of transition elements, the number of unpaired electrons can be calculated with the spin-only formula.
• As magnetic moment is directly related to the number of unpaired electrons, value of μ will vary directly with the number of unpaired electrons.
• In 2nd and 3rd transition series, orbital angular moment is significant. Hence spin-only formula for the complexes of 2nd and 3rd transition series is not useful.

Question 41.
Calculate the magnetic moment of the following species :
(1) Cr³⁺
(2) Co
(3) Co³⁺
(4) Cu^{2 +}.
Answer:

Question 42.
Explain : A slight difference in the calculated and observed values of magnetic moments.
Answer:
Magnetic moments are determined experimentally in solution or in solid state where the central atom or ion is hydrated or bound to ligands. Hence a slight difference is observed in calculated and experimentally obtained values of magnetic moment (μ).

Question 43.
Calculate the magnetic moment of a divalent ion in an aqueous solution, if its atomic number is 24.
Answer:
(1) The electronic configuration of divalent inri M²⁺ having atomic number 24 is.

The ion has number of unpaired electrons. n = 4.
By spin only’ formula, the magnetic μ is given by, \(\mu=\sqrt{n(n+2)}=\sqrt{4(4+2)}=4.90 \mathrm{~B} . \mathrm{M}\)
(This M²⁺ ion is Cr²⁺ ion)

Question 44.
When does a substance appear coloured?
Answer:
A substance appears coloured when it absorbs a portion of visible light. The colour depends upon the wavelength of absorption in the visible region of electromagnetic radiation.

Question 45.
Why do the d-block elements form coloured compounds?
Answer:

• Compounds (or ions) of many d-block elements or transition metals are coloured.
• This is due to the presence of one or more unpaired electrons in (n – 1) d-orbital. The transition metals have incompletely filled (n – 1) cf-orbitals.
• The energy required to promote one or more electrons within the d-orbitals involving d-d transitions is very low.
• The energy changes for d-d transitions lie in visible region of electromagnetic radiation.
• Therefore transition metal ions absorb the radiation in the visible region and appear coloured.
• Colour of ions of d-block elements depends on the number of unpaired electrons in (n – 1) d-orbital. The ions having equal number of unpaired electrons have similar colour.
• The colour of metal ions is complementary to the colour of the radiation absorbed.

Question 46.
How is complementary colour of a compound identified?
Answer:

1. The transition metal ions absorb the radiation in the visible region and appeared coloured.
2. Metal ion absorbs radiation of certain wavelength from the visible region. Remaining light is transmitted and the observed colour corresponds to the complementary colour of the light observed.
3. The complementary colour can be identified (with the diagram given).

For example if red colour is absorbed then transmitted complementary colour is green.

Question 47.
Write outer electronic configuration (d-orbital) and colour of 3d-series of transition metal ions.
Answer:
Colour of 3d-transition metal ions

Question 48.
Mention the factors on which the colour of a transition metal ion depends.
Answer:
The factors on which the colour of transition metal ion depends are as follows :

• The presence of incompletely filled d-orbitals in metal ions. (The compounds with the configuration d° and d’0 are colourless.)
• The presence of unpaired electrons in d-orbitals.
• d → d transitions of electrons due to absorption of radiation in the visible region.
• Nature of groups (anions) (or ligands) linked to the metal ion in the compound or a complex.
• Type of hybridisation in metal ion in the complex.
• Geometry of the complex of the metal ion.

Question 49.
Give reasons : Zinc salts are colourless.
Answer:

• Colour of the ions of d-block elements depends on the number of unpaired electrons in (n – 1) d-orbitals.
• Zinc forms salts of Zn²⁺ ions.
• The electronic configuration of Zn⁺² is [Ar] 3d¹⁰.
• Since Zn⁺² does not have unpaired electrons in 3d-orbital, d→d transition cannot take place, hence, Zn⁺² ions form colourless salts.

Question 50.
Explain : The compounds of Cu(II) are coloured.
Answer:

• The electronic configuration of ₂₉Cu [Ar] 3d¹⁰ 4s¹ and Cu²⁺ [Ar] 3d⁹.
• In copper compounds Cu²⁺ ions have incompletely filled 3d-orbital (3d⁹).
• Due to the presence of one unpaired electron in 3 d-orbital, Cu²⁺ ions absorb red light from visible spectrum and emit blue radiation due to d → d transition. Therefore, copper compounds are coloured.

Question 51.
Explain why the solution of Ti³⁺ salt is purple in colour.
OR
Why is Ti³⁺ coloured? (atomic number Ti = 22)
Answer:

• Ti²⁺ ions in the aqueous solution exist in the hydrated complex form as [Ti(H₂O)₆]²⁺.
• The electronic configuration of Ti is, ₂₂Ti [Ar]¹⁸ 3d² 4s² and Ti³⁺ [Ar]¹⁸ 3d¹. Hence in complex, Ti³⁺ has one unpaired electron in 3d subshell.
• Initially, the 3d electron occupies lower energy d-orbital (in t_2g-orbitals).
• On the absorption of radiations of about 500 nm in yellow green region by a complex, 3d¹ electron is excited to the higher energy d-orbital (e_g-orbitals).
• When the electron returns back to the lower energy d-orbital (t_2g), it transmits radiation of complementary colour i.e. red blue or purple colour. Hence, the solution of hydrated Ti³⁺ is purple.

Question 52.
What will be the colour of Cd²⁺ salts? Explain.
Answer:

• The electronic configuration of, ₄₈Cd [Kr]³⁶ 3d¹⁰ 5s² and Cd²⁺ [Kr]³⁶ 3d¹⁰.
• Cd²⁺ ions have completely filled 3d subshell and there are no unpaired electrons in 3d-orbital.
• Hence d → d transition is not possible.
• Therefore, Cd²⁺ ions do not absorb radiations in the visible region and the salts of Cd²⁺ ions are colourless (or white).

Question 53.
Indicate which of the ions may be coloured- V³⁺, Sc³⁺, Cr³¹, Cu²⁺, Ti³⁺, Cu⁺
Answer:

• V³⁺ [Ar]¹⁸ 3d²-((green)
  Since there are two unpaired electrons available, for d → d transition, it will show a Green colour.
• Sc³⁺ [Ar]¹⁸ 3d° (colourless/white).
  Since there are no unpaired electrons in the 3d subshell, it will not show colour.
• Cr³⁺ [Ar]¹⁸ 3d³ – (violet)
  There are three unpaired electrons in the 3d subshell, hence due to d → d transition, it will show violet colour.
• Cu²⁺ [Ar]¹⁸ 3d⁹ (blue)
  It has one unpaired electron that can undergo a d → d transition, hence it will show the colour blue.
• Ti³⁺ [Ar]¹⁸ 3d¹ (purple)
  It has one unpaired electron that can undergo a d → d transition, hence it will show the colour purple.
• Cu¹⁺ [Ar]¹⁸ 3d¹⁰ (colourless)
  There are no unpaired electrons in the 3d subshell, hence it will not show colour.

Question 54.
Explain why is cobalt chloride pink in colour when dissolved in water but turns deep blue when treated with concentrated hydrochloric acid.
Answer:

• The electronic configuration of ₂₇Co : [Ar] 3d¹4s² and Co²⁺ [Ar] 3d¹.
• When dissolved in water cobalt chloride, Co²⁺ forms pink complex, [Co(H₂O)₆]²⁺.
• The complex has octahedral geometry.
• Due to absorption of radiation in the visible region and d – d transition, it forms pink coloured solution.
• When CoCl₂ solution is treated with concentrated HCl solution it turns deep blue.
• This change is due to the formation of another complex, [CoC1₄]²⁺ which has a tetrahedral geometry.
• Thus due to a change in geometry of the complex formed the colour of the solution changes from pink to deep blue.

Question 55.
Explain the catalytic properties of the rf-block or transition metals.
Answer:

• d-block elements or transition metals and their compounds or complexes influence the rate of a chemical reaction and hence act as catalysts.
• In homogeneous catalysis a catalyst forms an unstable intermediate compound which decomposes into products and regenerates the catalyst. But transition metals involve heterogeneous catalysis.
• The transition metals have incompletely filled d-subshells which adsorb reactants on the surface and provide a large surface area for the reactants to react.
• Since transition metals have variable oxidation states they are very good catalysts.
• Hence, compounds of Fe, Co, Ni, Pt, Pd, Cr etc are used as catalysts in many reactions.

Question 56.
Explain the use of different transition metals as catalysts.
Answer:
The transition metals are very good catalysts.

• MnO₂ is used as a catalyst in the decomposition of KClO₃.
  
• In the manufacture of ammonia by Haber’s process, Mo/Fe is used as a catalyst.
  
• In the synthesis of gasoline by Fischer Tropsch process, Co-Th alloy is used as a catalyst.
• Finely divided Ni (formed by reduction of heated oxide in hydrogen) is very efficient catalyst in hydrogenation of ethene to ethane at 140 °C.
  
• Commercially, hydrogenation with Ninkel as catalyst is used to convert inedible oils into solid fat for the production of margarine.
• In the contact process of industrial production of sulphuric acid, sulphur dioxide and oxygen (from air) react reversibly over a solid catalyst of platinised asbestos.
  
• Carbon dioxide and hydrogen are formed by the reaction of carbon monoxide and steam at 500 °C with Fe-Cr catalyst.
  

Question 57.
What are interstitial compounds of transition metals?
Answer:

• The interstitial compounds of the transition metals are those which are formed when small atoms like H, C or N are trapped inside the interstitial vacant spaces in the crystal lattices of the metals.
• Sometimes, sulphides and oxides are also trapped in the crystal lattices of transition elements.
• Presence of these elements in the crystal lattices of metals provide new properties to the metals.

Question 53.
Give one example of an interstitial compound.
Answer:
Steel and cast iron are examples of interstitial compounds of carbon and iron.

Question 54.
Give examples of interstitial compounds where the property of the transition metal is changed.
Answer:
Steel and cast iron are interstitial compounds of carbon and iron (carbides of iron). Due to the presence of carbon, the malleability and ductility of iron is reduced while its tenacity increases.

Question 55.
What are the properties of the interstitial compounds of transition metals?
Answer:

• The chemical properties of the interstitial compounds are the same as that of parent transition metals.
• They are hard and show the metallic properties like electrical and thermal conductivity, lustre, etc.
• Since metal-non-metal bonds in the interstitial compounds are stronger than metal-metal bonds in pure metals, the compounds have very high melting points, higher than the pure metals.
• They have lower densities than the parent metal.
• The interstitial compounds containing hydrogen (i.e., hydrides of metals) are powerful reducing agents.
• The compounds containing carbon, hence behaving as carbides, are chemically inert and extremely hard like diamond.
• In these compounds, malleability and ductility are changed. For example steel and cast iron.

Question 56.
What are interstitial compounds? Why do these compounds have higher melting points than corresponding pure metals?
Answer:

1. The interstitial compounds of the transition metals are those which are formed when small atoms like H, C or N are trapped inside the interstitial vacant spaces in the crystal lattice of the metals.
2. Since metal-nonmetal bonds in the interstitial compounds are stronger than metal-metal bonds in pure metals, the compounds have very high melting points, higher than the pure metals.

Question 57.
Explain the formation of alloys of transition metals.
Answer:

• The transition metals form a large number of alloys among themselves, which are hard with high melting points.
• During alloy formation atoms of one metal are distributed randomly in the lattice of another metal.
• The metals with similar atomic radii and similar properties readily form alloys.
• These alloys have industrial importance.
• The alloys can be ferrous alloys or nonferrous alloys.

Question 58.
How are the transition metal alloys classIfied?
Answer:
The transition metal alloys are classified into

• Ferrous alloys
• Nonferrous alloys.

Question 59.
Explain what are
(1) ferrous alloys and
(2) nonferrous alloys.
Answer:

1. Ferrous alloys: In ferrous alloys, atoms of other elemems are distributed randomly in atoms of iron in the mixture. As the percentage of iron is more in these alloys, they are termed as ferrous alloys. For expamle : nickel steel, chromium steel, stainless steel, (All steels have abot 2% carbon)
2. onferrous alloys : These are formed by mixing atoms of transition metal other than iron with a non transition elemeni. For example, brass is an alloy of Cu and Zn. Bronze is an alloy of Cu and Sn.

Question 60.
What are the uses of alloys?
Answer:

Name of alloy	Important use in industry
(1) Bronze (Cu + Sn)	In making statues, medals and trophies (as it is tough, strong and corrosion-resistant)
(2) Cupra-nickel (Cu + Ni)	In making machinery parts of marine ships, boats, marine conden­ser tubes.
(3) Stainless steel	In the construction of the outer fuselage of ultra-high-speed aircraft.
(4) Nichrome : (Ni+ Cr in the ration 80 : 20)	For gas turbine engines.
(5) Titanium alloys	For ultra-high-speed flight, fireproof bulkheads and exhaust shrouds (as they withstand high temperatures).

Question 61.
Write the preparation of potassium permanganate.
Answer:
Potassium permanganate (KMnO₄) is prepared in the following steps,

(1) Chemical Oxidation : When finely divided manganese dioxide (Mn0₂) is heated strongly with fused caustic potash (KOH) and an oxidising agent potassium chlorate (KCIO₃), dark green potassium manganate (K₂MnO₄) is obtained. (In neutral or acidic medium K₂MnO₄ disproportionates.)

The liquid is filtered through glass wool or sintered glass and evaporated. Potassium manganate crystallises as small, blackish crystals.

(2) Oxidation of K₂MnO₄ by
(i) Electrolytic oxidation : An alkaline solution of manganate ion is electrolysed between iron electrodes separated by a diaphragm. Manganate ion \(\left(\mathrm{MnO}_{4}^{2-}\right)\) undergoes oxidation at anode forming permanganate ion \(\left(\mathrm{MnO}_{4}^{-}\right)\). Oxygen evolved at anode converts \(\left(\mathrm{MnO}_{4}^{2-}\right)\) to \(\left(\mathrm{MnO}_{4}^{-}\right)\).

The overall reaction is as follows :
2K₂MnO₄ + H₂O + [O] → 2KMnO₄ + 2KOH

The electrolytic solution is filtered and evaporated to obtain deep purple black crystals of KMn0₄.

(ii) By passing CO₂ through the solution of K₂MnO₄ :
3K₂MnO₄ + 4CO₂ + 2H₂O → 2KMnO₄ + MnO₂ + 4 KHCO₃

Question 62.
What is meant by the disproportionation of an oxidation state? Explain giving example of manganese.
Answer:

1. Disproportionation reaction is a chemical reaction in which atom or an ion of an element forms two or more species having different oxidation states, one lower and one higher.
2. Manganese (Mn) shows different oxidation states + 2 to +7.
3. When one oxidation state, lower or higher oxidation state becomes unstable as compared to another oxidation state, it undergoes disproportionation reaction.
4. For example, + 6 oxidation state of Mn is less stable than + 7 and + 4.
   • Hence, in acidic medium \(\mathrm{Mn}^{6+} \text { in } \mathrm{MnO}_{4}^{2-}\) undergoes disproportionation reaction.
     
   • In neutral medium green K₂MnO₄ disproportionates to KMn04 and MnO₂.
     

Question 63.
Give examples of oxidising reactions of KMnO₄.
Answer:
(1) KMnO₄ in acidic medium :

(2) KMnO₄ in neutral or alkaline medium in neutral or weakly alkaline medium :
(i) Iodide is oxidised to iodate ion.

(ii) Thiosulphate ion is oxidised to sulphate ion.

(iii) Manganous salt is oxidised to MnO₂.

Question 64.
Balance the following equations :
KI + KMnO₄ + H₂SO₄ → K₂SO₄ + MnSO₄ + 8H₂O + I₂
H₂S + KMnO₄ + H₂SO₄ → K₂SO₄ + MnSO₄ + H₂O + S.
Answer:
10 KI + 2KMnO₄ + 8H₂SO_{4 →} 6K₂SO₄ + 2MnSO₄ + 8H₂O + 5I₂
5H₂S + 2KMnO₄ + 3H₂SO₄ → K₂SO₄ + 2MnSO₄ + 8H₂O + 5S.

Question 65.
Give the uses of potassium permanganate.
Answer:
Uses of potassium permanganate :

• as an antiseptic.
• as a powerful oxidising agent in laboratory and industry.
• in the detection of unsaturation in organic compounds in the laboratory. (Baeyer’s reagent, alkaline KMnO₄).
• for detecting halides in qualitative analysis.
• in volumetric analysis for the estimation of H₂O₂, FeSO₄ etc.)

Question 66.
Write the formula of chromite ore.
Answer:
FeOCr₂O₃.

Question 67.
How is potassium dichromate manufactured from chromite ore (FeOCr₂O₃)?
Answer:
Manufacture of potassium dichromate (K₂Cr₂O₂) from chrome iron ore (FeOCr₂O₃) involves following steps :
(1) Concentration of ore : The chromite ore (FeOCr₂O₃) is powdered and washed with current of water.
(2) Conversion of chromite ore into sodium chromate : The concentrated ore is mixed with anhydrous sodium carbonate (Na₂CO₃) and a flux of lime in excess air and heated in a reverberatory furnace.

Sodium chromate (Na₂CrO₄) formed in the reaction is then extracted with water so that Na₂CrO₄ dissolves into solution and insoluble substances separate out.
(3) Conversion of Na2CrO₄ into sodium dichromate (Na₂Cr₄O₇) : Na₂CrO₄ solution is acidified with concentrated H₂SO₂, so that sodium chromate is converted into sodium dichromate.

Less soluble sodium sulphate crystallises out as Na₂SO₄.10H₂O. which is filtered off.
(4) Conversion of Na₂Cr₂O₇ into K₂Cr₂O₇ : Concentrated solution of Na₂Cr₂O₇ is treated with KCl on by double decomposition, K₂Cr₂O₇ is obtained.
Na₂Cr₂O₇ + 2KCl → K₂Cr₂O₇ + 2NaCl
On concentrating and cooling the solution, less soluble orange coloured K₂Cr₂O₇ crystallises out which is filtered and purified by recrystallisation.

Question 68.
What happens when hydrogen sulphide gas (H₂S) is passed through acidified K₂Cr₂O₇ solution?
Answer:
When hydrogen sulphide (H₂S) gas is passed into solution of K₂Cr₂O₇, H₂S is oxidised to a pale yellow solid (precipitate) of sulphur. Orange coloured solution becomes green due to formation of chromic sulphate (green coloured).

In the reaction, H₂S is oxidised to S and K₂Cr₂O₇ is reduced to Cr₂(SO₄)₃.

Question 69.
What are the common physical properties of d-block elements?
Answer:
The common physical properties of d-block elements are :

• All d-block elements are lustrous and shining.
• They are hard and have high density
• They have high melting and boiling points.
• They are good electrical and thermal conductors.
• They have high tensile strength and malleability.
• They can form alloys with transition and nontransition elements
• Many metals and their compounds are paramagnetic.
• Most of the metals are efficient catalysts.

Question 70.
What are the common chemical properties of d-block elements?
Answer:
The common chemical properties of the d-block elements are :

• All d-block elements are electropositive metals.
• They exhibit variable oxidation states and form coloured salts and complexes.
• They are good reducing agents.
• They form insoluble oxides and hydroxides.
• Iron, cobalt, copper, molybdenum and zinc are biologically important metals.
• They catalyse biological reactions.

Question 71.
Give examples to show that elements of first row of d-block elements differ from second and third row with respect to the stabilisation of higher oxidation states.
Answer:

• Highest oxidation state for the first row element is + 7 as in Mn.
  For the second row, the highest oxidation state is + 8 as in Ru (RuO₄).
  For the third row, the highest oxidation state is + 8 as in Os (OsO₄).
• Compounds of Mo(V) of 2nd row and W(VI) of 3rd row of transitional elements are more stable than Cr(VI) and Mn (VIII) of first row elements.

Question 72.
How do metals occur in nature?
Answer:
In nature, few metals occur in earth’s crust in free state or native state while other metals occur in the combined form.
(1) Elements in free state or native state : The metals which are non-reactive with air, water, CO₂ and non-metals occur in free state or native state. For example, gold, platinum, palladium occur in free state. Metals like Cu, Ag and Hg occur partly in the free state.

(2) Combined form : The metals which are reactive occur in the combined state with other elements forming compounds like oxides, sulphides, sulphates, carbonates, silicates, etc.

Question 73.
What are minerals?
Answer:
Minerals : They are naturally occurring chemical substances in the earth’s crust containing metal in free state or in combined form and obtainable from mining are called minerals. For example, haematite Fe203, galena PbS, etc.

Question 74.
What are ores?
Answer:
Ores : The minerals containing a high percentage of metals from which metals can be profitably extracted are called ores.
[Note : Every ore is a mineral but every mineral is not an ore.]

Question 75.
Write names of minerals and ores of Iron, Copper and Zinc.
Answer:

Metals	Mineral	Ore
Iron	Haematite Fe2O3 Magnetite Fe3O4 Limonite 2Fe2O3, 3H2O Iron pyrites FeS2 Siderite FeCO3	Haematite
Copper	Chalcopyrite CuFeS2 Chalcocite Cuprite Cu2O	Chalcopyrite Chalcocite
Zinc	Zinc blende ZnS Zincite ZnO Calamine ZnCO3	Zinc blende

Question 76.
What is metallurgy?
Answer:
Metallurgy : The process of extraction of metal in a pure state from its ore is called metallurgy.

Question 77.
Define the following:
(1) Pyrometallurgy
(2) Hydrometallurgy
(3) Electrometallurgy.
Answer:

1. Pyrometallurgy : It is a process of extraction of metal from metal oxide from concentrated ore by reduction with a suitable reducing agent like carbon, hydrogen, aluminium, etc. at high temperature.
2. Hydrometallurgy : It is a process of extraction of metals by converting their ores into aqueous solutions of metal compounds and reducing them by suitable reducing agents.
3. Electrometallurgy : It is a process of extraction of highly electropositive metals like Na, K, Al, etc. by electrolysis of fused compounds of the metals where metal ions are reduced at cathode forming metals.

Question 78.
What is gangue?
Answer:
Gangue : The earthly and undesired impurities of various substances like sand (SiO₂), metal oxides, etc. present in the ore are called gangue or matrix.

Question 79.
Define concentration of an ore.
Answer:
Concentration : A process of removal of gangue or unwanted impurities from the ore is called concentration of an ore. It is also called benefaction or dressing of an ore.

Question 80.
What are common methods of concentration of an ore?
Answer:
The concentration of an ore involves different methods depending upon the differences in physical properties of compounds or the metal present and the nature of the gangue.

The common methods of concentration of ore are as follows :

1. Gravity separation or hydraulic washing :
   This can be carried out by two processes as follows :
   • Hydraulic washing by using Wilfley’s table method
   • Hydraulic classifier methods.
2. Magnetic separation
3. Froth floatation process.
4. Leaching.

The method depends upon the nature of ore.

Question 81.
What is leaching?
Answer:
Leaching : ft is a (chemical) process used in the concentration of an ore by extracting soluble material from an insoluble solid by dissolving in a suitable solvent. This method is used in the concentration process of ores of Al, Ag, Au, etc.

Question 82.
What is roasting of an ore?
Answer:
Roasting : It is a process of strongly heating a concentrated ore in the excess of air below melting point of metal, to convert it into oxide form. It is used for a sulphide ore. For example, ZnS ore on roasting forms ZnO.

Question 83.
Write an equation to show how zinc blende (ZnS) is converted to ZnO.
Answer:
When zinc blende is roasted, it is converted to ZnO.
\(\mathrm{ZnS}+\mathrm{O}_{2} \stackrel{\Delta}{\longrightarrow} \mathrm{ZnO}+\mathrm{SO}_{2}\)

Question 84.
Explain the term : Smelting
Answer:
Smelting : The process of extraction of a metal from its ore by heating and melting at high temperature is called smelting. Reduction of ore is carried out during smelting.

Question 85.
What is calcination?
Answer:
Calcination is a process in which the ore is heated to a high temperature below the melting point of the metal in the absence of air or limited supply of air in a reverberatory furnace.

It is generally used for carbonate and hydrated oxides to convert them into anhydrous oxides.

Question 86.
Define the terms :
(1) Flux
(2) Slag
Answer:
(1) Flux : A flux is a chemical substance which is added to the concentrated ore during smelting in order to remove the gangue or impurities by chemical reaction forming a fusible mass called slag.
(2) Slag : It is a waste product formed by combination of a flux and gangue (or impurities) during the extraction of metals by smelting process.

Iron is the fourth most abundant element in the earth’s crust.

Question 87.
What is the composition of haematite ore?
Answer:
Composition of Haematite ore is Fe2O₃ + SiO₂ + Al₂O₃ + phosphates

Question 88.
Which impurities (gangue) are present in haematite ore?
Answer:
SiO₂ and Al₂O₃ are the impurities present in the haematite ore.

Question 89.
Which reducing agents are used to reduce haematite ore into metallic iron?
Answer:
Haematite ore is reduced using coke and CO. Carbon in the coke is converted to carbon monoxide. Carbon and carbon monoxide together reduce Fe203 to metallic iron.

Fe₂O₃ + 3C → 2Fe + 3CO.
Fe₂O₃ + 3CO → 2Fe + 3CO₂.

Question 90.
Why is limestone used in the extraction of iron?
Answer:

• The ore of iron contains acidic gangue or impurity of silica, SiO₂.
• To remove silica gangue, basic flux like calcium oxide CaO, is required, which is obtained from the decomposition of limestone, CaCO₃. \(\mathrm{CaCO}_{3} \stackrel{\Delta}{\longrightarrow} \mathrm{CaO}+\mathrm{CO}_{2}\)
• Silica reacts with CaO and forms a fusible slag of CaSiO₃.
  \(\mathrm{SiO}_{2}+\mathrm{CaO} \stackrel{\Delta}{\longrightarrow} \mathrm{CaSiO}_{3}\)

Therefore in the extraction of iron, lime is used.

Question 91.
Name the furnace in which iron is extracted from Haematite ore.
Answer:
Extraction of iron is carried out in Blast furnace.

Question 92.
Explain the extraction of iron from haematite.
Answer:
Iron is mainly extracted from haematite, Fe₂O₃ by reduction process.
Haematite ore contains silica (SiO₂), alumina (Al₂O₃) and phosphates as impurity or gangue.

Coke is used for the reduction of ore.

To remove acidic gangue SiO₂, a basic flux CaO is used which is obtained from lime stone CaCO₃.

The extraction process involves following steps :
(1) Concentration of an ore : The powdered ore is concentrated by gravity separation process by washing it in a current of water. The lighter impurities (gangue) are carried away leaving behind the ore.
(2) Roasting : The concentrated ore is heated strongly in a limited current of air. During this, moisture is removed and the impurities like S, As and phosphorus are oxidised to gaseous oxides which escape.

After roasting, the ore is sintered to form small lumps.
(3) Reduction (or smelting) : The roasted or calcined ore is then reduced by heating in a blast furnace.

The blast furnace is a tall cylindrical steel tower about 25 m in height and has a diameter about 5-10m lined with fire bricks inside.

Blast furnace has three parts :

• the hearth,
• the bosh and
• the stack.

At the top, there is a cup and cone arrangement to introduce the ore and at the bottom, tapping hole for withdrawing molten iron and an outlet to remove a slag.

The roasted ore is mixed with coke and limestone in the approximate ratio of 12 : 5 : 3.

A blast of hot air at about 1000 K is blown from downwards to upwards by layers arrangement. The temperature range is from bottom 2000 K to 500 K at the top. The charge of ore from top and the air blast from bottom are sent simultaneously. There are three zones of temperature in which three main chemical reactions take place.

(i) Zone of combustion : The hot air oxidises coke to CO which is an exothermic reaction, due to which the temperature of furnace rises.
C + ^1/2 O₂ → CO ΔH= – 220kJ
Some part of CO dissociates to give finely divided carbon and O₂.
2CO → 2C + O₂
The hot gases with CO rise up in the furnace and heats the charge coming down. CO acts as a fuel as well as a reducing agent.

(ii) Zone of reduction : At about 900 °C, CO reduces Fe₂O₃ to spongy (or porous) iron.
Fe₂O₃ + 3CO → 2Fe + 3CO₂
Carbon also reduces partially Fe₂0₃ to Fe.
Fe₂O₃ + 3C → 2Fe + 3CO

(iii) Zone of slag formation : At 1200 K limestone, CaCO₃ in the charge, decomposes and forms a basic flux CaO which further reacts at 1500 K with gangue (SiO₂, Al₂O₃) and forms a slag of CaSiO₃ and Ca₃AlO₃.
CaCO₃ + CaO + CO₂.
CaO + SiO₂ → CaSiO₃
12CaO + 2Al₂O₃ → 4Ca₃AlO₃ + 3O₂

The slag is removed from the bottom of the furnace through an outlet.

(iv) Zone of fusion : The impurities in ore like MnO₂ and Ca₃(PO₄)₂ are reduced to Mn and P while SiO₂ is reduced in Si. The spongy iron moving down in the furnace melts in the fusion zone and dissolves the impurities like C, Si, Mn, phosphorus and sulphure. The molten iron collects at the bottom of furnace. The lighter slag floats on the molten iron and prevents its oxidation.

The molten iron is removed and cooled in moulds. It is called pig iron or cast iron. It contains about 4% carbon.

Question 93.
Write the reaction involved in the zone of reduction in blast furnace during extraction of iron.
Answer:
Zone of reduction : At about 900 °C, CO reduces Fe₂O₃ to spongy (or porous) iron.
Fe₂O₃ + 3CO → 2Fe + 3CO₂
Carbon also reduces Fe₂O₃ to Fe.
Fe₂O₃ + 3C → 2Fe + 3CO

Question 94
Write reactions involved at different temperatures in the blast furnace.
Answer:

Temperature K	Change taking place in the blast furnace	Reactions
1. 500 K	Haematite ore loses moisture	ore xH2O → ore
2. 900 K	Reduction of ore by CO	Fe2O3 + 3CO → 2Fe + 3CO
3. 1200K	Limestone decomposes	CaCO3 → CaO + CO2
4. 1500K	Reduction of ore by C	Fe2O3 + 3C → 2Fe + 3CO
5. 1600 K	(i) Reduction of FeO by C (ii) Fusion of iron and slag formation	FeO + C → Fe + CO CaO + SiO2 → CaSiO3
6. 2000 K	Combustion of coke	2C + O2 → CO

Question 95.
What is the action of carbon on Fe203 in blast furnace?
Answer:
Fe₂O₃ + 3C → 2Fe + 3CO

Question 96.
What is refining of metals?
Answer:
Refining of metals : The purification of impure or crude metals by removing metallic and nonmetallic impurities is known as refining of metals. H

Question 97.
How is pure iron obtained from crude iron?
Answer:
Pure iron can be obtained by electrolytic refining.

Question 98.
Name the methods of refining of metals.
Answer:
Methods of refining of metals :

• Electrorefining
• Liquefaction
• Distillation
• Oxidation m

Question 99.
What are the factors that govern the choice of extraction technique of metals?
Answer:
The choice of extraction technique is governed by the following factors.

• Nature of ore
• Availability and cost of reducing agent. (Generally, cheap coke is used).
• Availability of hydraulic power.
• Purity of metal required.
• Value of by-products. For example. SO₂ obtained during the roasting of sulphide ores is important for the manufacture of H₂SO₄.

Question 100.
Which are the commercial forms of iron?
Answer:
Commercial forms of iron are :

• Cast iron
• wrought iron
• steel. H

Question 101.
(A) What are f-block elements?
(B) What are inner transition elements?
Answer:
(A)

• Elements in which differentiating electron enters into the pre-penultimate shell the (n – 2) f-orbital are known as f.block elements.
• They include 28 elements with atomic numbers ranging from 58-71 and atomic numbers 90 to 103 collectively.
• There are two f-series or two f-block elements, namely 4f and 5f series.
• The f-block includes two inner transition series namely the lanthanoid series. Cerium (58) to LuteUum (71) or the 4 f-block elements and the actinoid series. Thorium (90) to I.awrencium (103) or the 5f block elements.

(B) f-block elements are called inner transition elements since f-orbital lies much inside the f-orbital in relation to the transition metals, These elements have 1 to 14 electrons in their f-orbital.

Question 102.
What are fIrst inner transition elements?
Answer:

1. 4f-hlock elements are called (first) inner transition elements and have partly filled inner orbitaIs or (4f) orbitais.
2. They have general outer electronic configuration \((n-2) f^{1-14},(n-1) d^{0-1}, n s^{2}\).
3. There are two f-series, namely 4f and 5f series, called lanthanoids and acùnoids respectively.
4. They shos intermediate properties as compared to electropositive s-block elements and electronegative p-block elements. Hence they are called (first) inner transition elements.

Question 103.
What are lanthanoids (or lanthanides)?
OR
What is the lanthanoid series?
Answer:

• Lanthanoids or Lanthanoid series or Lanthanones : The series of fourteen elements from ₅₈Ce to ₇₁Lu in which a differentiating electron enters 4f sub-shell and follows lanthanum is called lanthanoid series and the elements are called lanthanoids.
• They have general electronic configuration, [Xe] 4f^1-14 ,5d^0-1, 6s².
• They follow Lanthanum (Z = 57) in 3d-series.

Question 104.
What are rare earths?
Answer:

• Lanthanoids or 4f-block elements are called rare earths.
• Lanthanoids are never found in free state, and their minerals are not pure.
• They exhibit similar chemical properties hence cannot be extracted and separated by normal metallurgical processes.
• Lanthanoid metals are available on small scale. Therefore they are called rare earths.

Question 105.
Explain the position of lanthanoids in the periodic table.
OR
How is the position of lanthanoids justified?
Answer:

1. Position of Lanthanoids in the periodic table : Group – 3; Period – 6.
2. They interrupt the third transition series of t/-block elements (i.e. 5 d series) in the sixth period.
3. They are 14 elements from ₅₈Ce to ₇₁Lu and their position is in between La and Hf. Since they follow lanthanum, they are called lanthanoids.
4. They are called 4f-series elements and for the convenience, they are placed separately below the main periodic table.
5. The actual position of lanthanoids is in between Lanthanum (Z = 57) and Hafnium (Z = 72).
6. Their position is justified due to following reasons :
   • All these elements have the same electronic configuration in ultimate and penultimate shells, one electron in 5d-orbital and two electrons in 6s-orbital.
   • Group valence of all lanthanoids is 3.
   • All lanthanoids from ₅₈Ce to ₇₁Lu have similar physical and chemical properties.

Question 106.
Explain the meaning of inner-transition series.
Answer:
A series of f-block elements having electronic configuration (n – 2)f^1-14 (n – I) d^0-1 ns² placed separately in the periodic table represents inner transition series. The f-orbitals lie much inside the e/ orbitals.

Since the last electron enters pre-penultimate shell, these elements are inner transition elements.

There are two inner transition series as follows :
4f-series ₅₈Ce → ₇₁Lu
5f-series ₉₀Th → ₁₀₃Lr

Question 107.
Draw a skeletal diagram of the periodic table to show the position of d and/- block elements.
Answer:

Question 108.
What are the properties of lanthanoids?
Answer:

• Lanthanoids are soft metak with silvery white colour, Colour and brightness reduces on exposure to air.
• They are good conductors of heat and electricity.
• Except promethium (P_m), all are non-radioactive in nature.
• The atomic and ionic radii decrease from La to Lu. (Lanthanoid contraction).
• Coordination numbers arc greater than 6.
• They are paramagnetic.
• They become ferromagnetic at lower temperature.
• Their magnetic and optical properties are independent of environment.
• They are called rare earths as their exiractioli was difficult.
• They are abundant in earth’s crust
• All lanthanoids fonn hydroxides which are ionic and basic. l3asicity decreases with atomic number,
• They react with nitrogen to give nitrides and with halogen to give halides.
  
• When heated with carbon at very high temperature give carbides
  

Question 109.
Explain the variations in ionisation enthalpy of lanthanoids.
Answer:

• The first ionisation enthalpy of lanthanoids is nearly same. It is very high for Gd and Yb.
• The ionisation enthalpy increases from first (IE₁] to third (IE₃).

First, second and third ionization enthalpies of lanthanoids in kj/mol

Lanthanoid	IE1	IE2	IE3
La	538.1	1067	1850.3
Ce	528.0	1047	1949
Pr	523.0	1018	2086
Nd	530.0	1034	2130
Pm	536.0	1052	2150
Sm	543.0	1068	2260
Eu	547.0	1085	2400
Gd	592.0	1170	1990
Tb	564.0	1112	2110
Dy	572.0	1126	2200
Ho	581.0	1139	2200
Er	589.0	1151	2190
Tm	596.7	1163	2284
Yb	603.4	1175	2415
Lu	523.5	1340	2022

Question 110.
Give the general electronic configuration of 4f-series elements (OR lanthanoids).
Answer:

• The general electronic configuration of 4f-series elements is, Ln[Xe]⁵⁴ 4f^1-14 5d^0-1 6s² where Ln is a lanthanoid.
• Xenon has electronic configuration, [Xe] : Is² 2s² 2p⁶ 3s² 3p⁶ 3d¹⁰ 4s² 4p⁶ 4d¹⁰ 5s² 5p⁶.
• In lanthanoids, the differentiating electron enters prepenultimate shell, 4f m

Question 111.
What are the important features of the electronic configuration of lanthanoids?
Answer:

1. Lanthanoids show two types of electronic configurations
   (a) an expected or idealized
   (b) an observed electronic configuration.
   In the idealized electronic configuration, the filling of the 4/-orbitals is regular but in the observed configuration, there is the shift of a single electron from 5d to 4/ sub-shell.
2. Lanthanum (57) has an electronic configuration [Xe] 4f° 5d¹6s². It does not have any f-electron.
3. The next incoming electron does not enter the 5d sub-shell but goes to the 4f sub-shell.
4. 14 electrons are progressively filled in the 4f sub-shell as the atomic number increases by one unit from La to Lu.
5. La, Gd and Lu are the only elements which possess one electron in a 5d orbital, while in all other lanthanoids the 5d sub-shell is empty.
6. La-(4f°), Gd-(4f⁷) and Lu-(4f¹⁴) posses extra stability due to their empty, half-filled and completely filled 4f-orbitals respectively.
7. The 4f-electrons in the prepenultimate shell are shielded by the outermost higher orbitals, 5s², 5p⁶, 5d¹, 6s², i.e. by eleven electrons, hence they are less effective in chemical bonding.

Electronic configuration (Idealised and observed)

[Xe]⁵⁴ ls²2s²2p⁶3s²3p⁶3d¹⁰4s²4p⁶4d¹⁰5s²5p⁶

Question 112.
Write the expected electronic configuration of (a) Nd (Z = 60) (b) Tm (Z = 69).
Answer:
Expected electronic configuration :
(a) Nd = [Xe] 4f³ 5d¹ 6s²
(b) Tm= [Xe] 4f¹⁴5d¹6s²

Question 113.
Write electronic configurations of
(i) Gd
(ii) Yb.
Answer:
(i) ₆₄Gd [Xe] 4f⁷5d¹6s² (Observed)
(ii) ₇₀Yb [Xe] 4f¹⁴5d°6s² (Observed)

Question 114.
Write expected and observed electronic configurations of
(i) Ce
(ii) Tb.
Answer:

Element	Expected (Idealised)	Observed
(i) 58Ce	[Xe] 4f15d16s2	[Xe] 4f25d°6s2
(ii) 65Tb	[Xe] 4f85d16s2	[Xe] 4f95d°6s2

Question 115.
Why are the expected and observed ground state electronic configurations of gadolinium and lawrencium same?
Answer:

• The degenerate orbitals like 4f and 5f acquire extra stability when they are half filled (4f⁷) or completely filled (5f¹⁴).
• The expected and observed electronic configuration of gadolinium is, ₆₄Gd [Xe] 4f⁷ 5d¹ 6s².
• The expected and observed electronic configuration of lawrencium is ₁₀₃Lr [Rn] 5f¹⁴ 6d¹ 7s².

Question 116.
Explain oxidation states of lanthanoids.
Answer:

• The common oxidation state of the Lanthanoids is 3 + due to the loss of 2 electrons from outermost 6s orbital and one electron from the penultimate 5d sub-shell.
• Gd³⁺ and Lu³⁺ show extra stability due to their half-filled and completely filled f-orbitals, Gd³⁺ = [Xe]4f⁷, Lu³⁺ = [Xe]4f¹⁴
• Ce and Tb attain the 4f° and 4f⁷configurations in the 4 + oxidation states. Eu and Yb attain the 4f⁷ and 4f¹⁴ configurations in the 2 + oxidation states. Sm and Tm also show the 2+ oxidation state although their stability can be explained based on thermodynamic factors.
• Some lanthanoids show 2 + and 4 + oxidation states even though they do not have stable electronic configuration of 4f°, 4f⁷ or 4f¹⁴. E.g. Pr⁴⁺ (4f¹), Nd²⁺ (4f⁴), Sm²⁺ (4f⁶), Dy⁴⁺ (4f⁸) etc

Question 117.
Write the. electronic configuration of the following ions :
(1) La^{3 +} ;
(2) Gd³⁺;
(3) Eu³⁺;
(4) Ce³⁺.
Answer:
(1) La^{3 +} = [Xe]
(2) Gd³⁺ = [Xe] 4f⁷
(3) Eu³⁺ = [Xe] 4f⁶
(4) Ce³⁺ = |Xe] 4f¹

Question 118.
Write the electronic configuration of
(1) Nd²⁺
(2) Nd³⁺
(3) Nd⁴⁺.
Answer:
(1) Nd²⁺ [Xe] 4f⁴
(2) Nd³⁺ [Xe] 4f³
(3) Nd⁴⁺ [Xe] 4f²

Question 119.
Among the following lathanoids, which elements show only one oxidation state 3 +? Why? Dy, Gd, Yb, Lu.
Answer:
Gd and Lu show only one oxidation state 3 +, since they acquire electronic configurations with extra stability namely 4f⁷ and 4f¹⁴ respectively.

Question 120.
Write the expected electronic configurations of :
(1) europium (Z = 63),
(2) erbium (Z = 68).
Answer:
(1) Europium (₆₃Eu) [Xe]⁵⁴4f⁶ 5d¹ 6s²
(2) Erbium (₆₈Er) [Xe]⁵⁴4f¹¹ 5d¹ 6s²

Question 121.
Why does lanthanum form La³⁺ ion, while cerium forms Ce⁴⁺ ion? (Atomic number La = 57 and Ce = 58).
Answer:

1. Electronic configuration Lanthanum is La [Xe] 4f° 5d¹ 6s². By losing three electrons, La acquires stable electronic configuration of Xe and forms La³⁺.
2. Electronic configuration of Cerium is Ce [Xe] 4f¹ 5d¹ 6s². By losing four electrons, Ce acquires stable electronic configuration of Xe and forms Ce⁴⁺.

Question 122.
₆₃EU and ₇₀Yb show 2 + oxidation state. Explain.
Answer:
₆₃EU has electronic configuration, [Xe] 4f⁷ 5d°6s². By losing 2 electrons from 6s orbital, it acquires stable configuration and 4f-orbital is half-filled.
₇₀Yb has electronic configuration, [Xe] 4f¹⁴ 5d° 6s². By losing 2 electrons from 6 s orbital, it acquires stable configuration and 4/-orbital is completely filled.
Hence Eu and Yb show 2 + oxidation states.

Question 123.
Display electronic configuration, atomic and ionic radii of lanthanoids.
Answer:
Answers are given in bold.

Electronic configuration and atomic ionic radii of lanthanoids

Question 124.
Explain the trend in atomic and ionic sizes of lanthanoids.
Answer:

• From ₅₇La (187 pm) to first element of 4f-series ₅₈Ce (183 pm), the contraction in atomic radius is very large, 4 pm.
• But from Ce onwards as atomic number increases atomic radius decreases very steadily so that total decrease in atomic radius from Ce to Lu is only 10 pm.
• In case of tripositive ions due to large pull by nucleus, the decrease in ionic radii is slightly more, i.e. 18 pm. For example, Ce³⁺ (103 pm) to Lu³⁺ (85 pm ).
• Hence all lanthanoids have similar properties. Therefore they cannot be separated from each other easily by normal metallurgical methods but require special methods.
  

Question 125.
What is meant by lanthanoid contraction?
Answer:
Lanthanoid contraction : The gradual decrease in atomic and ionic radii of lanthanoids with the increase in atomic number is called lanthanoid contraction.

Question 153.
Explain the causes of the lanthanoid contraction.
Answer:
The causes of the lanthanoid contraction are as follows :

• As the atomic number of lanthanoids or 4f-block elements increases the positive nuclear charge increases and correspondingly electrons are added to the prepenultimate 4f sub-shell.
• The attraction of nucleus on 4 f-electrons increases with the increase in atomic number.
• The outer eleven electrons namely, 5s², 5p⁶, 5d³ and 6s² do not shield inner 4 f-electrons from the nucleus.
• There is imperfect shielding of each 4f-electron from other 4 f-electrons.
• As compared to d sub-shell, the extent of shielding for 4 f-electrons is less.
• Due to these cumulative effects, 4 f-electrons experience greater nuclear attraction and hence valence shell is pulled towards the nucleus to the greater extent decreasing atomic and ionic radii appreciably.
• From 57La to 58Ce, there is a sudden contraction in atomic radius from 187 pm to 183 pm but the further decrease up to the last 4f-element, ₇₁Lu is comparatively low (about 10 pm).

Question 126.
Explain lanthanoid contraction effect with respect to (1) decrease in basicity, (2) ionic radii of post-lanthanoids.
Answer:
The lanthanoid contraction has a definite effect on the properties of lanthanoids as well as on the properties of post-lanthanoid elements.
(1) Decrease in basicity :

• In lanthanoids due to lanthanoid contraction, as the atomic number increases, the size of the lanthanoid atoms and their try positive ions decreases, i.e. from La³⁺ to Lu³⁺.
• As size of the cation decreases, according to Fajan’s rule, the polarizability increases and thus the covalent character of the M-OH bond increases, and ionic character decreases.
• Therefore the basic nature of the hydroxides decreases.
• Basicity and ionic character decrease in the order La(OH)₃ > Ce(OH)₃ > … Lu(OH)₃.

(2) Ionic radii of post-lanthanoids :

• Elements following the lanthanoids in the 6th period (third transition series, i.e. 5d-series) are known as post-lanthanoids.
• Due to lanthanoid contraction the atomic radii (size) of elements which follow lanthanum in the 6th period (3rd transition series – Hf, Ta, W, Re)-are similar to the elements of the 5th period (4d-series Zr, Nb Mo, Tc).
• Due to similarity in their size, post-lanthanoid elements (5d-series) have closely similar properties to the elements of the 2nd transition series (4d-series) which lie immediately above them.
• Pairs of elements namely Zr-Hf(Gr-4), Nb-Ta (Gr-5), Mo-W(Gr-6), Tc-Re (Gr-7) are called chemical twins since they possess almost identical sizes and similar properties.

Question 127.
Why do lanthanoids form coloured compounds?
Answer:

• The colour in lanthanoid ions is due to the presence of unpaired electrons in partially filled 4f sub-shells.
• Due to the absorption of radiations in the visible region there arises the excitations of the unpaired electrons from f-orbital of lower energy to the f-orbital of higher energy-giving f → f transitions.
• The observed colour is complementary to the colour of the light absorbed.
• The colour of try positive ions (M³⁺) depends upon the number of unpaired electrons in f-orbitals. Hence the lanthanoid ions having equal number of unpaired electrons have similar colour.
• The colours of M³⁺ ions of the first seven lanthanoids, La³⁺ to Eu³⁺ are similar to those of seven elements Lu³⁺ to Tb³⁺ in the reverse order.

Question 128.
Explain, why Ce³⁺ ion is colourless.
Answer:

• The electronic configuration of Ce³⁺ is, [Xe] 4f⁷
• Even though there is one unpaired electron in 4f sub-shell, the f → f transition involves very low energy. Hence, Ce³⁺ ion does not absorb radiation in the visible region.

Therefore Ce³⁺ ion is colourless.

Question 129.
Explain why Gd³⁺ is colourless.
Answer:

• Gd³⁺ has electronic configuration, [Xe] 4f⁷
• Due to extra stability of half filled orbital, it does not allow f → f transition, and hence does not absorb radiations in the visible region.

Hence Gd³⁺ is colourless.

Question 130.
The salts of (1) La³⁺ and (2) Lu³⁺ are colourless. Explain.
Answer:
(1) (i) La³⁺ has electronic configuration, [Xe] 4f°
(ii) Since there are no unpaired electrons in 4 f-orbital, f → f transition is not possible. Hence La³⁺ ions do not absorb radiations in visible region, and they are colourless.

(2) (i) LU³⁺ has electronic configuration [Xe] 4 f¹⁴
(ii) Since there are no unpaired electrons in 4f-orbital, f → f transition is not possible. Hence Lu³⁺ ions do not absorb radiations in visible region and they are colourless.

Question 131.
Explain giving examples, the colour of nf electrons is about the same as those having (14-n) electrons.
Answer:
(1) Consider Pr³⁺ and Tm³⁺ ions.
Tm³⁺ (4f¹²) has nf electron 12 electrons.
Pr²⁺ (4f²) has (14 – n) = (14 – 2) = 12 electrons. Both, Tm³⁺ and Pr³⁺ are green.

(2) Consider Nd³⁺ and Er³⁺ ions. Er³⁺ (4f¹¹) has nf electrons 11.
Nd³⁺ (4f³) has (14 – n) is (14 – 3) = 11 electrons. These both ions Er³⁺, Na³⁺ are pink in colour.

Question 132.
Lu³⁺ has observed magnetic moment zero. How many unpaired electrons are present?
Answer:
Since magnetic moment is zero, it has no unpaired electrons.

Question 133.
What are the application of lanthanoids?
Answer:

1. Lanthanoid compounds are used inside the colour television tubes and computer monitor. For example mixed oxide (Eu, Y)₂ O₃ releases an intense red colour when bombarded with high energy electrons.
2. Lanthanoid ions are used as active ions in luminescent materials. (Optoelectronic application)
3. Nd : YAG laser is the most notable application. (Nd : YAG = neodymium doped ytterium aluminium garnet)
4. Erbium doped fibre amplifiers are used in optical fibre communication systems.
5. Lanthanoids are used in cars, superconductors and permanent magnets.

Question 134.
What are actinoids? Give their general electronic configuration.
Answer:

• Actinoids : The series of fourteen elements from ₉₀Th to ₁₀₃Lr which follow actinium (₈₉Ac) and in which differentiating electrons are progressively filled in 5f-orbitals in prepenultimate shell are called actinoids.
• Their general electronic configuration is, [Rn]⁸⁶ 5f^1-14 6d^0-1 7s².

Question 135.
Why are actinoids called inner transition elements?
Answer:

• Actinoids are 5f-series elements in which electrons progressively enter into 5f-orbitals, which are inner orbitals.
• They have electronic configuration [Rn]⁸⁶ 5f^1-14 6d^0-1 7s².
• They show intermediate properties as compared to electropositive 5-block elements and electronegative p-block elements. Hence they are called second inner transition elements.

Question 136.
Explain the position of actinoids in the periodic table.
OR
What is the position of actinoids in the periodic table?
Answer:

• Position of actinoids in the periodic table : Group-3; Period-7.
• They interrupt the fourth transition series (6d series) in the seventh period in the periodic table.
• After Actinium, 89Ac which has electronic configuration [Rn] 6d¹7s², the electrons enter progressively 5f orbital and they have general electronic configuration, [Rn] 5f^{1 – 14} 6d^{0 – 1} 7s².
• They are fourteen elements from ₉₀Th to ₁₀₃Lr and since they follow actinium, they are called actinoids.
• They are called 5f series or second inner transition series elements and for the convenience they are placed separately below the periodic table.

Question 137.
Write idealised and observed electronic configuration of actinoids.
Answer:

Question 138.
Explain the oxidation states of actinoids.
Answer:

• Due to availability of electrons in 5f, 6d and 7s sublevels, lanthanoids show varied oxidation states.
• The most common oxidation state is + 3 due to loss of one electron from 6d and two electrons from 6s-orbitals.
• Ac, Th and Am show + 2 oxidation state.
• Th, Pa, U, Np, Pu, Am and Cm show + 4 oxidation state.
• Np and Pu show the highest oxidation state + 7.
• U, Np, Bk, Cm and Am show stable oxidation state + 4.
• In + 6 oxidation state, due to high charge density the actinoid ions form oxygenated ions, e.g. \(\mathrm{UO}_{2}^{+}, \mathrm{NpO}_{2}^{+},\) etc.

Question 139.
Why do actinoids show variable oxidation states?
Answer:

• The large number of variable oxidation states of actinoids is due to very small energy difference between 5f, 6d and 7s subshells.
• The electronic configuration of actinoids is, [Rn] 5f^1-14 6d^0-1, 7s²
• Due to the loss of three electrons from 6d¹ and 7s², the common oxidation state is + 3, but due to further loss of electrons from 5f subshell, actinoids show higher oxidation states.
• The variable oxidation states are + 2 to + 7.

Electronic configuration of actinoids and their ionic radii in + 3 oxidation state

Question 140.
What is meant by actinoid contraction?
Answer:
Actinoid contraction: The gradual decrease in atomic and ionic radii of actinoids with the increase in atomic number is called actinoid contraction.

Question 141.
The extent of actinoid contraction is greater than lanthanoid contraction. Explain Why?
Answer:

• The electronic configurations of :
  Lanthanoids [Xe] 4f^{1 – 14} 5d^{0 – 1} 6s²
  Actinoids [Rn] 5f^{1 – 14}, 6d^{0 – 1} 7s²
• The mutual screening offered in case of 5f-electrons is less than that in the 4f-electrons.
• Hence, the outer orbitals are pulled to the greater extent by nuclei in actinoids (5f-series) than in lanthanoids (4f-series).
• Therefore, actinoid contraction is greater than lanthanoid contraction.

Question 142.
Describe the important properties of actinoids.
Answer:
Properties of actinoids :

• Actinoids are silvery white ( similar to lanthanoids).
• They are highly reactive radioactive elements.
• Most of these elements are not found in nature. They are radioactive and man made.
• They experience decrease in the atomic and ionic radii from Ac to Lw, known as actinoid contraction.
• The common oxidation state is +3. Elements of the first half of the series exhibit higher oxidation states.

Question 143.
What are the applications of actinoids?
Answer:

• Thorium oxide (ThO₂) with 1% CeO₂ is used as a major source of indoor lighting, as well as for outdoor camping.
• Uranium is used in the nuclear reactors.
• The isotopes of Thorium and Uranium have very long half-life, so that we get very negligible radiation from them: Hence they can be used safely.

Question 144.
What are transuranic elements?
Answer:

• The man-made elements heavier titan Uranium (Z = 92) in the Actinoid señes are called transuranic elements.
• These are synthetically or artificially prepared (man-made) elements starting from Neptunium (Z= 93).
• Transuranic elements arc generally considered to be from Neptunium (Z = 93) to Lawrencium (Z = 103).
• Recently elements from atomic number 104 (Rf) to atomic number 118 (Og) or (Uuo) in 6 d series have also been identified as transuranic elements.
• All transuranic elements are radioactive.

Question 145.
What are post actinoid elements?
Answer:

• Elements from atomic number 104 to 118 are called postactinoid elements.
• The post actinoid elements known so far are transition metals.
• They can be synthesised in the nuclear reactions.
• As they have very short half life period, it is difficult to study their chemistry.
• Ruiherfordium forms a chloride (RfCl₄) similar to zirconium and hafnium in + 4 oxidation state.
• Dubniurn resembles niobium and protactinium.

Question 146.
Name the transuranic elements.
Answer:
Names of transuranic elements

Name	Symbol	Atomic number
Neptunium	Np	93
Plutonium	Pu	94
Americium	Am	95
Curium	Cm	96
Berkelium	Bk	97
Californium	Cf	98
Einsteinium	Es	99
Ferminum	Fm	100
Mendelevium	Md	101
Nobelium	No	102
Lawrencium	Lr	103
Rutherfordium	Rf	104
Dubnium	Db	105
Seaborgium	Sg	106
Bohrium	Bh	107
Hassium	Hs	108
Meitnerium	Mt	109
Darmstadtium	Uun/Ds	110
Roentgenium	Uuu/Rg	111
Copernicium	Uub/Cn	112
Ununtrium	Uut	113
Ununquadium	Uuq	114
Ununpentium	Uup	115
Ununhexium	Uuh	116
Ununseptium	Uus	117
Ununoctium	Uuo	118

In the transuranic elements, elements from atomic number 93 to 103 are actinoids and from atomic number 104 to 118 are called postactinoid elements.

Question 147.
What are the similarities between lanthanides and actinides.
Answer:
Lanthanides and actinides show similarities as follows :

• Both, lanthanides and actinides show+ 3 oxidation state.
• In both the series, the f-orbitals are filled gradually.
• Ionic radius of the elements in both the series decreases with increase in atomic number.
• Electronegativity in both the series is low for all the elements.
• They all are highly reactive.
• The nitrates, perchlorates and sulphates of all elements are soluble while their hydroxides, theorides and carbonates
  are insoluble.

Question 148.
Differentiate between lanthanoids and actinoids.
Answer:

Lanthanoids	Actinoids
Electronic configuration [Xe] 4f1-14 5d0-1, 6s2	Electronic configuration [Rn] 5f1-14 6d0-1, 7s2
The differentiating electron enters the 4f subshell.	The differentiating electron enters the 5f subshell.
Except for Promethium all other elements occur in nature.	Except for Uranium and Thorium, all others are synthesized in the laboratory.
The binding energy of 4f electrons is higher.	5f-orbitals have lower binding energy.
Only Promethium is radioactive.	All elements are radioactive.
Besides 3 + oxidation state they show 2 + and 4 + oxidation states.	Besides 3 + oxidation state they show 2 + , 4 + , 5 + , 6 + , 7 + oxidation states.
They have a less tendency to form complexes.	They have greater tendency to form complexes.
Many lanthanoid ions are colourless. Their colour is not as deep and sharp as actinoids.	Actinoids are coloured ions. Their colour is deep, e.g. U3+ is red and U4+ is green.
Lanthanoids cannot form oxo-cations.	Actinoids form oxo-cations such as – UO2+, PuO2+, UO22+, PuO22+.
Lanthanoid hydroxides are less basic.	Actinoid hydroxides are more basic.
Lanthanoid contraction is relatively less.	Actinoid contraction from element to element is comparatively more.
Mutual shielding of 4f electrons is more.	Mutual shielding effect of 5f electrons is less.

Question 149.
Compare Pre-transition metals, Lanthanoid and transition metals.
Answer:

Multiple Choice Questions

Question 150.
Select and write the most appropriate answer from the given alternatives for each sub-question :

1. In transition elements, the different electron enters into
(a) ns subshell
(b) np subshell
(c) (n – 1) d subshell
(d) (n – 2)f subshell
Answer:
(c) (n – 1) d subshell

2. Chromium (Z = 24) has electronic configuration
(a) [Ar]4d^A 4s²
(b) [Ar] 4d⁵ 45¹
(c) [Ar] 3d⁵ 3s¹
(d) [Ar] 3d⁵ 4s¹
Answer:
(d) [Ar] 3d⁵ 4s¹

3. Manganese achieves the highest oxidation state in its compounds
(a) Mn₃O₄
(b) KMnO₄
(c) K₂MnO₄
(d) MnO₂
Answer:
(b) KMnO₄

4. The group which belongs to transition series is
(a) 2
(b) 7
(c) 13
(d) 15
Answer:
(b) 7

5. The last electron of transition element is called
(a) s-electron
(b) p-electron
(c) d-electron
(d) f-electron
Answer:
(c) d-electron

6. Which one of the following elements does NOT belong to first transition series?
(a) Fe
(b) V
(c) Ag
(d) Cu
Answer:
(c) Ag

7. The incomplete d-series is
(a) 3d
(b) 4d
(c) 5d
(d) 6d
Answer:
(d) 6d

8. The electronic configuration of Sc is
(a) [Ar] 3d² 4s²
(b) [Ar] 3d¹ 4s²
(c) [Kr] 3d¹ 4s²
(d) [Kr] 3d² 4s¹
Answer:
(b) [Ar] 3d¹ 4s²

9. The observed electronic configuration of copper is
(a) [Ar]¹⁸ 3d⁹ 4s²
(b) [Kr] 3d¹⁰ 45¹
(c) [Kr] 3d⁹ 4s²
(d) [Ar] 3d¹⁰ 45¹
Answer:
(d) [Ar] 3d¹⁰ 45¹

10. Fe belongs to the
(a) 3d-transition series elements
(b) 4d-transition series elements
(c) 5d-transition series elements
(d) 6d-transition series elements
Answer:
(a) 3d-transition series elements

11. Which one of the following elements does not exhibit variable oxidation states?
(a) Iron
(b) Copper
(c) Zinc
(d) Manganese
Answer:
(c) Zinc

12. In KMnO₄, oxidation number of Mn is
(a) 2+
(b) 4 +
(c) 6 +
(d) 7+
Answer:
(d) 7+

13. Which one of the following transition elements shows the highest oxidation state?
(a) Sc
(b) Ti
(c) Mn
(d) Zn
Answer:
(c) Mn

14. The colour of transition metal ions is due to
(a) s → s transition
(b) d → d transition
(c) p → p transition
(d) f → f transition
Answer:
(b) d → d transition

15. Which one of the following compounds is expected to be coloured?
(a) AgNO₃
(b) CuSO₄
(c) ZnCl₂
(d) CuCl
Answer:
(b) CuSO₄

16. The metal ion which is NOT coloured, is
(a) Fe³⁺
(b) V²⁺
(c) Zn²⁺
(d) Ti³⁺
Answer:
(c) Zn²⁺

17. A pair of coloured ion is
(a)Cu²⁺, Zn²⁺
(b)Cr³⁺ , Cu⁺
(c) Cd²⁺, Mn⁵⁺
(d) Fe²⁺, Fe³⁺
Answer:
(d) Fe²⁺, Fe³⁺

18. The highest oxidation state is shown by
(a) Fe
(b) Mn
(c) Os
(d) Cr
Answer:
(c) Os

19. Transition elements are good catalysts since
(a) they show variable oxidation states
(b) they have partially filled d-orbitals
(c) they have low I.P
(d) they have small atomic radii
Answer:
(a) they show variable oxidation states

20. Highest magnetic moment is shown by the ion
(a) V³⁺
(b) Co³⁺
(c) Fe³⁺
(d) Cr³⁺
Answer:
(c) Fe³⁺

21. The most common oxidation state of lanthanoids is
(a) +4
(b) +3
(c) +6
(d) +2
Answer:
(b) +3

22. Which one of the following elements belong to the actinoid series?
(a) Cerium
(b) Lutetium
(c) Thorium
(d) Lanthanum
Answer:
(c) Thorium

23. The total number of elements in each of f-series is
(a) 10
(b) 12
(c) 14
(d) 15
Answer:
(c) 14

24. The general electronic configuration of Lanthanoids is
(a) [Xe] 4f^{1 – 14} 5d^{0 – 1} 6s²
(b) [Xe] 4f^{2 – 14} 5d^{0 – 1} 6s²
(c) [Xe] 4f^{1 – 13} 5d^{0 – 1} 6s²
(d) [Xe] 4f^{0 – 14} 5d^{0 – 1} 6s¹
Answer:
(a) [Xe] 4f^{1 – 14} 5d^{0 – 1} 6s²

25. f-block elements are called ………………….
(a) transition elements
(b) representative elements
(c) inner transition elements
(d) alkalin earth metals
Answer:
(c) inner transition elements

26. Actinoids form coloured salts due to the transition of electrons in
(a) d – d
(b) f – f
(c) f – d
(d) s – f
Answer:
(b) f – f

27. In the periodic table, Gadolinium belongs to
(a) 4th Group 6th period
(b) 4th group 4th period
(c) 3rd group 5th period
(d) 3rd group 7th period.
Answer:
(d) 3rd group 7th period.

28. The transuranic elements are prepared by
(a) addition reaction
(b) substitution reactions
(c) decomposition reaction
(d) nuclear reactions
Answer:
(d) nuclear reactions

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 12 Stock Exchange

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
A stock exchange is where stock brokers and traders can buy and sell ______________
(a) Gold
(b) Securities
(c) Goods
Answer:
(b) Securities

Question 2.
The ______________ is the first Stock Exchange to be recognized by the Indian Government under the Securities Contracts (Regulation) Act.
(a) BSE
(b) NSE
(c) OTCEI
Answer:
(a) BSE

Question 3.
______________ is a dealer in Stock Exchange who carries on trading of securities in his own name.
(a) Jobber
(b) Broker
(c) Bull
Answer:
(a) Jobber

Question 4.
A ______________ who expects fall in price of securities.
(a) bull
(b) bear
(c) Jobber
Answer:
(b) bear

Question 5.
The practice of buying and selling within the same trading day before the close of the market on that day is called ______________
(а) insider trading
(b) day trading
(c) auction
Answer:
(b) day trading

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) SEBI	(1) Expects the price of shares to rise in the future.
(b) Day Trading	(2) Expects the price of shares to fall in the future.
(c) Bull	(3) Buying and selling of securities during the same trading day.
(d) Bear	(4) To protect the interest of investors in the securities market.
(e) BSE	(5) Buying and selling of securities to particular investors.
	(6) One of the oldest stock exchanges in India.
	(7) To protect the interest of companies in the securities market.
	(8) Buying and selling of securities within a week.
	(9) Newest Stock Exchange in India.
	(10) One who invests in new issues of securities.

Answer:

Group ‘A’	Group ‘B’
(a) SEBI	(4) To protect the interest of investors in the securities market.
(b) Day Trading	(3) Buying and selling of securities during the same trading day.
(c) Bull	(1) Expects the price of shares to rise in the future.
(d) Bear	(2) Expects the price of shares to fall in the future.
(e) BSE	(6) One of the oldest stock exchanges in India.

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
A specific place where the trading of securities is arranged in an organized method.
Answer:
Stock Exchange

Question 2.
The first Stock Exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.
Answer:
BSE

Question 3.
A dealer in the Stock Exchange who carries on the trading of securities in his own name.
Answer:
Jobber

Question 4.
A speculator who expects the price of shares rises in the future.
Answer:
Bull

1D. State whether the following statements are True or False.

Question 1.
A Stock Exchange is a reliable barometer to measure the economic condition of a country.
Answer:
True

Question 2.
Bombay Stock Exchange is the oldest Stock Exchange in India.
Answer:
True

Question 3.
A broker is a dealer in the Stock Exchange who carries on the trading securities in his own name.
Answer:
False

Question 4.
A Bear is a speculator who expects the prices of shares to rise in the future.
Answer:
False

1E. Complete the sentences.

Question 1.
The oldest Stock Exchange in India is the ______________
Answer:
BSE

Question 2.
A speculator who expects fall in prices of share ______________
Answer:
Bear

Question 3.
A person who buys or sells shares on behalf of his clients is called as ______________
Answer:
broker

Question 4.
The largest and most modern stock exchange in India is the ______________
Answer:
National Stock Exchange

1F. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(a) Regulator of Capital Market	(1) …………………..
(b) ……………………	(2) Nifty
(c) Jobber	(3) …………………..
(d) …………………..	(4) Oldest Stock Exchange in the world

(London Stock Exchange, Index of NSE, SEBI, Trades in securities in his own name)
Answer:

Group ‘A’	Group ‘B’
(a) Regulator of Capital Market	(1) SEBI
(b) Index of NSE	(2) Nifty
(c) Jobber	(3) Trades securities in his own name
(d) London Stock Exchange	(4) Oldest Stock Exchange in the world

1G. Answer in one sentence.

Question 1.
What is Stock Exchange?
Answer:
A Stock Exchange is a place or a platform where investors-individuals, institutions, or organizations meet to purchase or sell securities.

Question 2.
Who is a Broker?
Answer:
He is a licensed member of a stock exchange who transacts business on the behalf of his clients, being an agent between investors and jobbers.

Question 3.
Who is Jobber?
Answer:
A Jobber is a professional speculator in the stock exchange who carries on the trading securities in his name.

Question 4.
Who is a Bull?
Answer:
Bull (Tejiwala) is an optimistic speculator who expects the price of a share to rise in the future and buys with the hope of selling at a high price to earn profit.

Question 5.
Who is Bear?
Answer:
A bear is a speculator who expects the prices of shares to fall in the future and sells his securities at the prevailing prices to avoid loss.

Question 6.
Who is Lame Duck?
Answer:
A lame-duck is a bear broker whose expectations have gone wrong and makes a loss in his dealings.

Question 7.
What is a trading ring?
Answer:
The trading of shares that takes place during trading hours on the floor of the stock exchange is called the Trade Ring.

Question 8.
What is Sensex?
Answer:
Sensex is the index of the BSE which represents the increase or decrease in prices of stocks of a selected group of companies.

Question 9.
What is Rally?
Answer:
If the Sensex or Nifty moves in an upward direction over a period of 14 to 20 trading sessions, it is called as a rally.

Question 10.
What is Crash?
Answer:
If the Sensex or Nifty moves in a downward direction, it is called a crash.

1H. Correct the underlined word/s and rewrite the following sentences.

Question 1.
One of the functions of SEBI is to protect the interest of issuers of securities in the securities market.
Answer:
One of the functions of SEBI is to protect the interest of investors in securities in the securities market.

Question 2.
A Broker cannot directly deal with investors.
Answer:
A Jobber cannot directly deal with investors.

Question 3.
A Bear expects prices of shares to rise in the future.
Answer:
A Bull expects prices of shares to rise in the future.

Question 4.
A Bull buys new issues of securities from the primary market.
Answer:
A stag buys new issues of securities from the primary market.

Question 5.
A stock market is an important constituent of the money market.
Answer:
A stock market is an important constituent of the capital market.

2. Explain the following terms/concepts.

Question 1.
Stock Exchange
Answer:
Stock Exchange is a specific place where various types of securities are purchased and sold. The term securities include equity shares, preference shares, debentures, government securities, and bonds, etc. including units of mutual funds. They act as intermediaries between investors and borrowers, to provide safety and stability to the investors, stock exchanges in India are regulated by SEBI.

Question 2.
Broker
Answer:
He is a member of the stock exchange and is licensed by the stock exchange to buy or sell shares on his client’s behalf. He is an agent between the investors and Jobber and earns his income in the form of commission or brokerage.

Question 3.
Jobber
Answer:
A Jobber is a professional speculator in the stock exchange who carries on the trading securities in his own name. He buys securities as an owner and sells them at a higher price, and cannot deal with investors directly.

Question 4.
Bull
Answer:
A Bull is a speculator who is optimistic, expects the price of a share to rise in the future, and buys with the hope of selling them at higher prices to earn profit. A bull’s action leads to higher prices for securities as there is an excess purchase over sales.

Question 5.
Bear
Answer:
Bear (Mandiwala) is a pessimistic speculator who expects a fall in the price of a security, so he sells his securities at prevailing prices to avoid loss as he anticipates further fall in prices. His action leads to lowering prices as there is an excess of sales over the purchase.

Question 6.
Contract Note
Answer:
It is a note given by a broker to his client in a specific form, validating the transaction. Its copy comes immediately to both after the transaction within 24 hours.

3. Study the following case/situation and express your opinion.

1. Mr. Y is a practicing Company Secretary offering advisory services to companies, institutions, etc. on corporate laws including the Companies Act. He has received few queries from his clients, please assist Mr. Y in answering them.

Question (a).
BDI bank wants to offer DP services. Whom should they approach for registering as DP?
Answer:
If BDI bank wants to offer DP services, they should approach the concerned Depository for registering themselves.

Question (b).
KM Financial wants to offer Debenture Trustee services. Where should they apply for getting registered?
Answer:
If KM Financial wants to offer Debenture Trustee services then they should be registered with SEBI to act as Debenture Trustee.

Question (c).
TT Ltd. Co. wants to issue an IPO. Should it get itself registered with SEBI?
Answer:
The entire IPO process is regulated by SEBI, TT Ltd. Co should register with The U. S. Securities and Exchange Commission (SEC) which ensures that the company has made disclosures in detail thus TT Ltd will get the green signal to issue IPO.

2. Mr. P has recently got his B.Sc. degree. He has enrolled in a course in the securities market. As a new student of this subject, he has few queries as follows:

Question (a).
Does a company need to be listed on a stock exchange’s ability to sell its securities through the stock exchange?
Answer:
Yes, a company needs to be listed on Stock Exchanges to sell its securities through the Stock Exchange.

Question (b).
What is the term used for referring to a stock exchange’s ability to reflect the economic conditions of a country?
Answer:
A Stock Exchange is the “Economic Barometer” and acts as an economic mirror that reflects the economic conditions of a country, eg. Boom, recession period.

Question (c).
Which term refers to the functions of the stock exchange as a provider of a ready market for sale and purchase of security?
Answer:
The “Liquidity” function is the main function of the Stock Exchange as it provides a ready market for the sale and purchase of securities.

4. Distinguish between the following.

Question 1.
Jobber and Broker
Answer:

Points	Jobber	Broker
1. Meaning	A Jobber is one who buys and sells securities in his own name.	A broker is an agent who deals in buying and selling securities on behalf of his client.
2. Nature of Trading	A jobber carries out trading activities only with the broker.	A broker carries out trading activities with the jobber on behalf of his investors.
3. Restrictions on Dealings	A jobber is prohibited to directly buy or sell securities in the stock exchange. Also, he cannot directly deal with the investors.	A broker acts as a link between the jobber and the investors. He trades i.e. buys and sells securities on behalf of his investors.
4. Agent	A jobber is a special mercantile agent.	A broker is a general mercantile agent.
5. Form of Consideration	A jobber gets consideration in the form of profit. The positive difference between sale and purchase of securities.	A broker gets consideration in the form of commission or brokerage. The rate/amount of brokerage is fixed by stock exchanges.
6. Amount of Consideration	The amount of Consideration payable to Jobber is determined by the competition of jobbers.	The rate or amount of brokerage of a broker is fixed as per stock exchange provisions.

5. Answer in brief.

Question 1.
State the functions of SEBI.
Answer:
The various functions of SEBI are

• To protect the interest of investors in the securities stock market.
• To promote the development of securities markets.
• To regulate the business in stock exchanges and any other securities market.
• To register and regulate the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustee of trust deeds, registrars to an issue, merchants bankers, underwriters, and such other intermediaries who may be associated with the securities market.
• To register and regulate the working of the Depositories, Depository Participants, Custodians of securities, foreign institutional investors, credit rating agencies.
• To register and regulate the working of venture capital funds and collective investment schemes including mutual funds.
  • To promote and regulate self-regulatory organizations.
  • To prohibit fraudulent and unfair trade practices relating to securities markets.
• To promote investors’ education and training of intermediaries of the securities market.
• To prohibit insider trading in securities.
• To conduct research and carry out publications.

Question 2.
State any four features of the Stock Exchange.
OR
What are the features of the Stock Exchange?
Answer:
According to the Securities Contracts (Regulation) Act 1956, the term stock exchange is defined as, “An association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.”

Husband and Dockerary have defined stock exchange as “Stock exchanges are the privately organized market which is used to facilitate trading in securities.”

The important features of a stock exchange are as follows:
(i) Market for Securities:
The stock exchange is a place where all types of corporate securities, as well as securities of government and semi-government bodies, are traded.

(ii) Second Hand Securities:
Securities traded in the Stock exchange are those securities that are already issued by the companies. In other words, second-hand securities are bought and sold among investors in a stock exchange.

(iii) Listed Securities:
Only securities that are listed with the stock exchange can be traded on a stock exchange. Listing of securities helps in protecting the interest of investors as companies have to strictly comply with the rules laid down by the stock exchange.

(iv) Organised and Regulated Market:
All Listed Companies have to comply with the guidelines of SEBI. Companies will also have to function as per the rules and regulations laid down by the Stock exchange.

(v) Specific Location:
The stock exchange is a specific physical place where securities are traded. It is a marketplace where brokers and intermediaries meet to conduct dealings in securities. Today, all trading is done electronically on a stock exchange.

(vi) Trading only through Members:
Securities in a Stock exchange can be traded only by the members of the exchange on their own behalf or through authorized brokers.

6. Justify the following statements.

Question 1.
The Securities and Exchange Board of India SEBI is the regulator for the securities market in India.
Answer:

• The Securities and Exchange Board of India was set up on 12th April 1988. The main purpose of setting up SEBI was to develop and regulate stock exchanges in India.
• The objectives of SEBI are to protect the interest of the investors and regulate the securities market in India.
• To bring professionalism in the working of intermediaries in the capital markets, i.e., brokers, mutual funds, stock exchanges, Demat- depositories, etc. is also a feature of SEBI.
• The role of SEBI also includes creating a good financial climate, so that companies can raise long-term funds through the issue of securities – shares and debentures.
• The main function of SEBI is to register and regulate the working of stockbrokers, sub-brokers, share transfer agents, bankers to an issue, trustee of trust deeds, registrars to an issue, merchant bankers, underwriters, and such other intermediaries who may be associated with securities market.
• Thus, it is rightly said that SEBI is the regulator of the securities market in India.

Question 2.
Stock exchanges work for the growth of the Indian economy.
Answer:

• The stock exchange is a specific place where the trading of securities is arranged in an organized method.
• The stock exchanges help in the process of rapid economic development by speeding up the process of capital formation as well as resource mobilization in India.
• It helps in raising medium-term capital as well as long-term capital for the development and expansion of the companies in the Indian economy.
• New industries and commercial enterprises can easily acquire capital funds for economic growth.
• It reflects a healthy financial and investment conducive atmosphere in the economy. It stimulates investment in the productive sector which accelerates the process of economic development of the nation.
• Thus, it is rightly said that the stock exchanges work for the growth of the Indian economy.

7. Answer the following questions.

Question 1.
Explain the functions of the Stock Exchange.
Answer:
Definition Of Stock Exchange: According to the Securities Contracts (Regulation) Act of 1956, the term ‘stock exchange’ is defined as “An association, organization or body of individuals, whether incorporated or not established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.”

Husband and Dockerary have defined stock exchange as: “Stock exchanges are privately organized markets which are used to facilitate trading in securities.”

Stock Exchange performs various important functions discussed as follows:
(i) Mobilisation of Savings:
Stock markets are organized and regulated markets that protect the interests of the investors. It obtains surplus funds (savings) from individual households private and public sector units etc. and channelizes them in the proper direction. It thus provides a ready market for buying and selling securities.

(ii) Capital Formation:
Investors in securities are attracted due to good returns on investments and capital appreciation. The stock exchanges encourage investors to invest in the primary and secondary stock markets for investing in stock markets, investors need to save money. Savings lead to investment in shares and other securities. Such investments lead to capital formation.

(iii) Pricing of Securities:
The price of the securities are sold in the stock markets is based on demand and supply forces listed securities get prestige and reputation. When the prices of the shares go up constantly, their security value increases. The valuation of securities is useful to investors, the government, and creditors. The investors thus can gauge their investment worth and the creditors too can estimate the creditworthiness of a company.

(iv) Economic Barometer:
A stock exchange is a reliable barometer to measure the economic condition of a country. They encourage investors to invest and help companies to generate long-term funds thus promoting industrial development. The rise or fall in the share prices indicates the boom or recession cycle of the economy. The stock exchange is the pulse of the economy and the mirror that reflects the country’s economic status.

(v) Protecting Interest of Investors:
In the stock markets, only the listed securities are traded. The stock exchanges protect the interests of the investors through the strict enforcement of their rules and regulations. The securities Control (Regulation) Act 1956, provides rules for the functioning, licensing, and controlling speculations of stock exchanges. The SEBI also plays an important role in monitoring stock exchanges thus protect the interests of the investors by regulating intermediaries, monitoring speculation, and making the investors aware of their rights through IEPF, etc.

(vi) Liquidity:
The stock exchange facilitates liquidity by providing a ready market for the sale and purchase of securities. It provides marketability along with liquidity to investments in corporate enterprises. Because of stock exchange investors can convert a long-term investment into short-term and medium-term as it provides a two-way outlet by transforming money into an investment and vice versa without much delay.

(vii) Better Allocation of Capital:
The stock exchange regulates and controls the flow of investment from unproductive to productive, uneconomic to economic, unprofitable to profitable enterprises. Thus, savings of the people are channelized into industry yielding good returns, and underutilization of capital is avoided.

(viii) Contributes to Economic Growth:
The stock exchange help in the process of rapid economic development by speeding up the process of capital formation as well as resource mobilization. It helps in raising medium as well as long-term capital for the development and expansion of the companies. The resource of the economy flows from one company to another. This leads to capital formation as well as economic growth.

(ix) Providing Scope for Speculation:
Stock Exchanges’ like any other market provides a mechanism for evaluating the prices of securities through the basic law of demand and supply. Stock Exchange prices help to check the real worth of the securities in the market and thus permit healthy speculation of securities.

(x) Promotes the Habit of Savings and Investment: The stock market offers attractive opportunities for investment in various securities by obtaining funds from surplus units such as households, individuals, public sector units, central government, etc, and channelizing these funds for productive purposes.

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 11 Financial Market Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 11 Financial Market

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
A financial market is a market in which people trade _____________ and derivatives at low transaction costs.
(a) Gold
(b) Financial securities
(c) Commodities
Answer:
(b) Financial securities

Question 2.
When the trade bills are accepted by commercial banks it is known as _____________
(a) Treasury bills
(b) Commercial bills
(c) Commercial papers
Answer:
(b) Commercial bills

Question 3.
Money market is a market for lending and borrowing of funds for _____________ term.
(a) short
(b) medium
(c) long
Answer:
(a) short

Question 4.
Central Government is a borrower in the money market through the issue of _____________
(a) Commercial Papers
(b) Trade Bills
(c) Treasury Bills
Answer:
(c) Treasury Bills

Question 5.
_____________ is the market for borrowing and lending long term capital required by business enterprises.
(a) Money Market
(b) Capital Market
(c) Gold Market
Answer:
(b) Capital Market

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Financial Market	(1) Long term fund
(b) Money Market	(2) New issue market
(c) Primary Market	(3) Trading of commodities
(d) Commercial paper	(4) Short term fund
(e) Capital Market	(5) Trading of financial securities
	(6) Share market
	(7) Unsecured promissory note
	(8) Secured promissory note

Answer:

Group ‘A’	Group ‘B’
(a) Financial Market	(5) Trading of financial securities
(b) Money Market	(4) Short term fund
(c) Primary Market	(2) New issue market
(d) Commercial paper	(7) Unsecured promissory note
(e) Capital Market	(1) Long term fund

1C. Write a word or term or a phrase that can substitute each of the following statements.

Question 1.
A market where people trade financial securities and derivatives at low transaction costs.
Answer:
Financial Market

Question 2.
A market that provides long-term funds.
Answer:
Capital Market

Question 3.
A market that provides short-term funds.
Answer:
Money Market

Question 4.
A money market instrument is used by banks when one bank faces a temporary shortage of cash.
Answer:
Call Money

Question 5.
A bill is issued by the Reserve Bank of India on behalf of the Government of India.
Answer:
Treasury Bill

Question 6.
A market that exclusively deals with the new issue of securities.
Answer:
Primary Market

1D. State whether the following statements are True or False.

Question 1.
A Financial Market is a market in which people trade financial securities and derivatives at high transaction costs.
Answer:
False

Question 2.
The money market is the market for long-term funds.
Answer:
False

Question 3.
The capital market is the market for long-term funds.
Answer:
True

Question 4.
The primary market is also known as the new issue market.
Answer:
True

Question 5.
The secondary market is commonly known as the stock market.
Answer:
True

Question 6.
Commercial paper is a secured promissory note.
Answer:
False

Question 7.
Treasury bills are issued by commercial banks.
Answer:
False

1E. Find the odd one.

Question 1.
Treasury Bills, Shares, Certificate of Deposit.
Answer:
Shares

Question 2.
FPO, Private Placement, Commercial paper.
Answer:
commercial paper

Question 3.
New Issues Market, Call Money Market, Secondary Market.
Answer:
call money market

1F. Complete the sentences.

Question 1.
Funds borrowed and lent in money market are for _____________ term.
Answer:
short

Question 2.
When trade bills are accepted by commercial banks, it is known as _____________
Answer:
Trade Bill

Question 3.
Unsecured negotiable promissory notes issued by a commercial bank is called as _____________
Answer:
certificate of deposit

Question 4.
New shares, debentures, etc. are traded in _____________ market.
Answer:
primary

Question 5.
In capital market the instruments traded have maturity period of more than _____________ year.
Answer:
one

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(a) Money Market	(1) …………………..
(b) Zero risk instrument	(2) …………………..
(c) ………………….	(3) Capital Market
(d) …………………	(4) Secondary Market

(Buying and selling of existing securities, Treasury Bills, Funds for long term, Fund for short term)
Answer:

Group ‘A’	Group ‘B’
(a) Money Market	(1) Fund for short term
(b) Zero risk instrument	(2) Treasury bills
(c) Fund for long terms	(3) Capital Market
(d) Buying and selling of existing securities	(4) Secondary Market

1H. Answer in one sentence.

Question 1.
What is the financial market?
Answer:
A financial market is a market where financial securities are exchanged. It acts as an intermediary between investors and borrowers.

Question 2.
What is call a money market?
Answer:
The call money market is a market where funds are borrowed or lent for a very short period of 2 days to 14 days.

Question 3.
What is a Certificate of deposit?
Answer:
They are the negotiable term deposit certificates issued by commercial banks and financial institutions to build short-term finance.

Question 4.
What is a Trade bill?
Answer:
The seller draws a bill and the buyer accepts it, on acceptance, the bill becomes a marketable instrument called a Trade bill.

Question 5.
What is the new issue market?
Answer:
The market which is utilized to build fresh capital is called as ‘new issue market.’

1I. Correct the underlined word/s and rewrite the following sentences.

Question 1.
In the Primary market, already existing securities are traded.
Answer:
In the Secondary market, already existing securities are traded.

Question 2.
Companies sell fresh shares for the first time to the public in the secondary market.
Answer:
Companies sell fresh shares for the first time to the public in the Primary market.

Question 3.
In the Money market, the instruments traded have a maturity period of more than one year.
Answer:
In the Capital market, the instruments traded have a maturity period of more than one year.

Question 4.
The financial market can be classified as a capital market and call money market.
Answer:
The financial market can be classified as capital market and Money market.

2. Explain the following terms/concepts.

Question 1.
Financial Market
Answer:

• Every business unit has to raise short-term as well as long-term funds to meet the working and fixed capital requirements.
• In any economy, there are two different groups, one who invests money or lends money and the other who borrows or uses the money.
• The financial market acts as a link between these two different groups.
• The financial market provides a place or a system through which the transfer of funds by investors to the business units is adequately facilitated.
• A financial market consists of two major segments:
  • Money Market
  • Capital Market
• Money market deals in short-term credit and the capital market deals in medium-term and long-term credit.

Question 2.
Capital Market
Answer:

• It is a market for borrowing and lending long-term capital required by business enterprises.
• The financial assets dealt with in a capital market have a long or indefinite maturity period.
• The capital market forms an important core of a country’s financial system.

Definition:
G.H. Peters defines, “Capital Market as being the market or collection of inter-related markets in which potential borrowers are brought into contact with potential lenders.”

Question 3.
Money Market
Answer:

• A market where short-term funds are borrowed and lent is called ‘money market7. It is a market for financial assets that are close substitutes for money.
• The instruments dealt within the market are liquid and can be converted quickly into cash at a low transaction cost.

Definition:
According to the Reserve Bank of India, “The money market is the center for dealings mainly of short-term characters in money assets; it needs the short-term requirements of borrowers and provides liquidity or cash to the lenders. It is a place where short-term surplus investible funds at the disposal of financial, institutions or individuals are bid by borrower’s agents comprising institutions and individuals and also by the government itself.”

Question 4.
Call Money Market
Answer:

• Call money and Notice money market is an important segment of the money market in India. Under Call money, funds are lent or borrowed for very short periods i.e. one day.
• Under Notice money, funds are lent or borrowed for periods between 2 days to 14 days. Funds have to be repaid within a specified time on the receipt of the notice given by the lender.
• When one bank faces a temporary shortage of cash, then another bank with surplus cash lends money to it. Hence, the Call/Notice money market is also called as interbank Call money market.

Question 5.
Treasury Bills
Answer:

• Treasury Bills are short-term securities issued by the Reserve Bank of India on behalf of the Central Government of India to meet the government’s short-term funds requirement.
• Treasury Bills have three maturity periods – 91 days, 182 days, and 364 days. These bills are sold to banks and individuals, firms, institutions, etc. These bills are negotiable instruments and are freely transferable.
• The minimum value of T-bills is Rs. 25,000 or in multiples of Rs. 25000. These are issued at a discount and repaid at par and hence they are also called Zero-Coupon Bonds.

Question 6.
Commercial Bills
Answer:
Trade Bills/Commercial Bills:

• Bill of Exchange also called Trade bills are negotiable instruments or bills drawn by a seller on the buyer for the value of goods sold under credit sales.
• These have a short-term maturity period, generally of 90 days, and can be easily transferred.
• If the seller wants immediate cash, he can discount the trade bills with Commercial banks.

Question 7.
Repurchase agreement
Answer:
It is an agreement where the seller of security (i.e. one who needs money) agrees to buy it back from the lender at a higher price on a future date. Usually, this agreement is between RBI and commercial banks. RBI uses this agreement to control the money supply in the economy. These agreements are the most liquid of all money market investments having maturity ranging from 24 hours to several months.

Question 8.
Primary Market
Answer:

• It is a component of the financial market where short-term borrowing takes place.
• In the money market, the instruments are traded for not more than one year.

Question 9.
Secondary Market
Answer:

• The securities issued earlier are traded in the secondary market.
• It is the market where existing securities are resold or traded.
• Only listed securities can be dealt with in the secondary market.

3. Study the following case/situation and express your opinion.

1. Joy Ltd. Company is a newly incorporated company. It wants to raise capital for the first time by issuing equity shares.

Question (a).
Should d go to primary market or secondary market to issue its shares?
Answer:
Joy Ltd. should go to the primary market to issue equity shares in the market. Primary Market is mainly dealing with fresh issues of securities.

Question (b).
Should it offer its shares through public offer or rights issue?
Answer:
Joy Ltd. should offer its shares through public offer (IPO) as Joy Ltd. Company is going to its securities first time.

Question (c).
What will be the issue of Equity shares by Joy Ltd. Company called IPO or FPO?
Answer:
When Joy Ltd. issued its securities first time then it is called as IPO at the same time if Joy Ltd. offered securities for the second, third, or fourth time it is called a follow on public offering (EPO)

2. Mr. X is the CFO (Chief Financial Officer) of PQR Co. Ltd. which is a reputed company in the field of construction business. Often Mr. X has to decide on investing surplus funds of the company for short durations. And at times, he also has to decide the sources from where he can raise funds for short durations.

Question (a).
Assume on behalf of the company Mr. X has Rs. 5 lakhs and wants to invest for a short period. Should he buy Equity shares of Certificate of Deposit?
Answer:
As Mr. X wants to invest for a short period with the amount of Rs. 5 lakhs, then he should buy a certificate of deposit.

Question (b).
The company has surplus funds and wants to invest it. However, he needs the money back in 4 months, so should he invest in Treasury Bills or Government Securities?
Answer:
If he needs money back in 4 months, then he should invest in Treasury bills with the option of 91 days Maturity.

Question (c).
Can the company issue Certificate of Deposit?
Answer:
PQR Company Ltd. is a construction company. Hence it cannot issue a certificate of deposit as it can be issued by commercial banks and financial institutions only.

4. Distinguish between the following.

Question 1.
Primary Market and Secondary Market
Answer:

Points	Primary Market	Secondary Market
1. Meaning	The market is utilized for raising fresh capital in the form of shares and debentures.	It is a market where existing securities are resold or traded.
2. Function	The function is to raise long-term funds through fresh issues of securities.	The function is to provide a continuous and ready market for existing long-term securities.
3. Participants	The participants are financial institutions, mutual funds, underwriters, individual investors.	The participants of the primary market are the stockbrokers and the members of the stock exchange.
4. Listing Requirements	Listing is not required in the case of the primary market.	Only listed securities can be dealt with in the secondary market.
5. Determinants of Prices	The prices are determined by the management of the corporate house with due compliances with the SEBI requirements for the new issues of securities.	In the case of the secondary market, the price is determined by forces of demand and supply of the market and it keeps on fluctuating.
6. Issue of Prospectus	The prospectus is issued to invite the public to subscribe to the issue of shares.	The prospectus is not issued to the public.
7. Relation with investors	Direct contact with the investors at large is established by the companies.	There may not be direct contact with the investors who want to buy or sell the existing securities.

Question 2.
Money Market and Capital Market
Answer:

Points	Money Market	Capital Market
1. Meaning	A market where short-term funds are borrowed and lent.	A market for borrowing and lending long-term capital is required by the business enterprises.
2. Term of Finance	It provides short-term funds in short-term instruments where the maturity is measured in days, weeks, or months.	It is a market for long-term instruments which is measured in years.
3. Instruments	The instruments dealt in the market are bills of exchange, treasury bills, bankers’ acceptance, etc.	The instruments dealt in this market are bonds, debentures, equity shares, and stock.
4. Functions	Money Market exists as a mechanism of liquidity adjustment i.e. a link between depositors and borrowers.	Capital Market functions as a link between investors and entrepreneurs.
5. Risk	The prices of these instruments do not fluctuate and they carry very low market risk.	The instruments are long-term and subject to market fluctuations and so, they carry very high financial and market risk.
6. Institution	Commercial banks are important institutions in the money market.	The stock exchange is an important institution in the capital market.

5. Answer in brief.

Question 1.
State any four functions of the financial market.
Answer:
Functions of financial market:
(i) Capital formation:

• Capital is the main part of the functioning of the business.
• The capital market provides a channel through which savings flow to organizations in the form of capital.
• This leads to capital formation.

(ii) Transfer of Resources:

• The financial market is one of the key sources of transfer of resources.
• The financial market facilitates the transfer of real economic resources from lenders to ultimate users.

(iii) Mobilization of funds:

• Investors that have savings must be linked with corporate that require investment.
• The financial market enables the investors to invest their saving according to their choices and risk assessment.
• This will utilize funds and the economy will boom.

(iv) Price determination:

• The financial instruments traded in a financial market get their prices from the mechanism of demand and supply.
• The interaction between demand and supply will help to determine the prices.

Question 2.
State any four features of the money market.
Answer:
The features of the money market are as follows:
(i) No Fixed Place for Trading of Securities/Shares:
In the money market, there is no definite place to carry out lending and borrowing operations of securities or shares.

(ii) Involvement of Brokers:

• Dealings in such a market can be conducted with or without the participation of brokers.
• Companies, banks, etc. may directly deal in the money market.

(iii) Financial Assets:
The financial assets that are dealt in the money market are close substitutes for money as these assets can be easily converted into cash without any loss in value.

(iv) Organisations Involved:
The main organizations dealing in the money market in India are the Reserve Bank of India (RBI), State governments, banks, corporate investors, etc.

Question 3.
State any four features of the capital market.
Answer:
Following are the main features of the capital market:

• The link between investors and borrowers: The capital market links investors with the borrowers of funds. It routes money from savers to entrepreneurial borrowers.
• Deals in medium and Long-term investment: A capital market is a market where medium and long-term financial instruments are traded. Through this market corporate, industrial organizations, financial institutions access long-term funds from both, domestic and foreign markets.
• Presence of Intermediaries: The capital market operates with the help of intermediaries like brokers, underwriters, merchant bankers, collection bankers, etc. These intermediaries are important elements of a capital market.
• Promotes capital formation: The capital market provides a platform for investors and borrowers of long-term funds to trade. This leads to capital formation in an economy as it mobilizes funds.

Question 4.
Explain any 4 types of money market instruments.
Answer:
Instruments of Money Market:
(i) Commercial Paper:

• Commercial papers were first issued in the Indian money market in 1990.
• They are unsecured debt instruments.
• They are issued only by companies with strong credit ratings. They are issued at a discount rate. They are in the form of promissory notes.
• They are negotiable instruments i.e. they are freely transferable by endorsement and delivery.
• They are issued for a period of 15 days to 1 year.

(ii) Commercial Bills:

• When the goods are sold on credit, the buyer becomes liable to make payment on a specific date in the future.
• The seller draws a bill and the buyer accepts it. On acceptance, the bill becomes a marketable instrument called a Trade Bill.
• When a Trade Bill is accepted by a commercial bank, it is known as a commercial bill.
• They are in the form of negotiable instruments.
• They are usually issued for a period of 90 days. But this period can vary between 30 to 90 days.
• The liquidity of this bill is very high.
• It is the most common method to meet the credit needs of trade and industry.

(iii) Certificate of Deposits:

• Certificate of Deposits was first introduced to the money market of India in 1989.
• They are issued by commercial banks or financial institutions at discount, at par, or at market rate.
• They are in the form of promissory notes and stamp duty is applicable on the instrument.
• The maturity periods of this instrument are from 15 days to 1 year.
• The subscribers for certificates of deposits are individuals, associations, companies, trusts, etc.
• They are freely transferable by endorsement and delivery after a lock-in period of a minimum of 15 days.

(iv) Treasury Bills:

• Issue/Use of Treasury Bills was started by the Indian government in 1917.
• This instrument is issued by the government to institutions or the public to bridge the gap between receipts and expenditure.
• It is issued by the government on a discount for a fixed period not exceeding 1 year.
• These bills are in the nature of promissory notes containing a promise to pay the amount stated to the bearer of the instrument.
• The maturity period of this bill is 182 days.
• These bills enjoy a high degree of liquidity.

6. Justify the following statements.

Question 1.
Financial Markets act as a link between investor and borrower.
Answer:

• The financial market is the market that brings together borrowers and lenders.
• The financial market attracts fund from investors by offering them a variety of schemes and then collected fund is diverted into the business organizations.
• People having surplus cash invested into financial market securities, the financial market provides finance than to businesses.
• Similarly, when the financial market generates income from investments in business, it shares with the investor.
• Thus, it is a valuable link between borrower and lender.

Question 2.
Money Market makes available short-term finance through different instruments.
Answer:

• The money market is the market that provides short-term loans to businesses and governments.
• The loan period ranging from one day to one year.
• Call money and notice money provide finance for periods between 2 days to 14 days.
• Treasury Bills offer finance to the government for 91 days, 182 days, 364 days. Trade Bill or commercial bills offer finance up to 90 days.
• Commercial paper offers finance to the business organization from 7 days to 1 year. Money Market Mutual Fund offers finance for a maximum period of 1 year.
• Hence, the money market makes available short-term finance through different instruments.

Question 3.
Capital Market is useful for the corporate sector.
Answer:

• Capital Market is the market that provides loans for long-term periods. It is controlled by SEBI.
• It uses shares, debenture bonds, Mutual funds.
• The corporate sector issues these securities in the market and attracts saving from investors by offering them a variety of schemes. These savings become capital and get invested in the business.
• It is helpful to develop the corporate and industrial sectors.
• Thus, the capital market is useful for the corporate sector.

Question 4.
There are many participants in the money market.
Answer:
Some important participants in the money market are:
(i) Reserve Bank of India:
It is the most important participant in the money market. Through the money market, RBI regulates the money supply and implements its monetary policy. It issues government securities on behalf of the government and also underwrites them. It acts as an intermediary and regulator of the market.

(ii) Central and State Government:
Central Government is a borrower in the Money Market, through the issue of Treasury Bills (T-Bills). The T-Bills are issued through the Reserve Bank of India (RBI). The T-Bills represent zero risk instruments. Due to its risk-free nature banks, corporate, etc. buy the T-Bills and lend to the government as a part of its short-term borrowing program. The state government issues bonds called State Development Loans.

(iii) Public Sector Undertakings (PSU):
Many listed government companies can issue commercial paper in order to obtain their working capital.

(iv) Scheduled Commercial Banks:
Scheduled commercial banks are very big borrowers and lenders in the money market. They borrow and lend in the call money market, short notice market, Repo and Reverse Repo market.

(v) Insurance Companies:
Both the general and life insurance companies are usual lenders in the money market. They invest more in capital market instruments. Their role in the money market is limited.

(vi) Mutual Funds:
Mutual Funds offer varieties of schemes for the different investment objectives of the public. Mutual funds schemes are liquid schemes. These schemes have the investment objective of investing in money market instruments.

(vii) Non-Banking Finance Companies (NBFCs): NBFCs use their surplus funds to invest in government securities, bonds, etc. (Example of NBFC – Unit Trust of India)

(viii) Corporates:
Corporates borrow by issuing commercial papers which are nothing but short-term promissory notes. They are the lender to the banks when they buy the certificate of deposit issued by the banks.

(ix) Primary Dealers:
Their main role is to promote transactions in government securities. They buy as well as underwrite the government securities.

7. Answer the following questions.

Question 1.
Explain the functions of the financial market.
Answer:
Financial Market – Meaning:

• A financial market is an institution, that facilitates the exchange of financial instruments including deposits, loans, corporate stocks, bonds, etc.
• The financial market provides a place through which the transfer of funds by investors to the business is adequately facilitated.
• Financial Markets attract funds from investors and channelizes them to corporations.
• The financial market consists of money and capital markets. They help to raise short and long-term capital.

Functions of Financial Market:
(i) Capital formation:

• Capital is the main part of the functioning of the business.
• The capital market provides a channel through which savings flow to organizations in the form of capital.
• This leads to capital formation.

(ii) Transfer of Resources:

• The financial market is one of the key sources of transfer of resources.
• The financial market facilitates the transfer of real economic resources from lenders to ultimate users.

(iii) Mobilization of funds:

• Investors that have savings must be linked with corporates that require investment.
• The financial market enables investors to invest their savings according to their choices and risk assessment.
• This will utilize funds and the economy will boom.

(iv) Price determination:

• The financial instruments traded in a financial market get their prices from the mechanism of demand and supply.
• The interaction between demand and supply will help to determine the prices.

(v) Productive usage:

• Financial Market allow productive use of the fund.
• An excess fund of investors is used by the borrowers for productive purposes.

(vi) Enhancing Income:

• The financial market allows lenders to earn interest or dividends on their surplus funds.
• Thus, it helps in the enhancement of the individual and the national income.

(vii) Liquidity:

• The financial market provides a mechanism through which liquidating of financial instruments take place.
• Here, the investor can sell their financial instruments and convert them into cash.

(viii) Sale Mechanism:

• Financial Market provides a mechanism for selling a financial instrument by investors.
• It helps to offer the benefit of marketability and liquidity of such assets.

(ix) Easy access:

• Both industries and investors need each other.
• The financial market provides a platform where buyers and sellers can find each other easily.

(x) Industrial Development:
The financial market transforms saving into capital. Corporate use of funds of investors to undertakes productive or commercial activities leads to economic development.

Question 2.
State the instruments in the money market.
Answer:

• The money market is a market for borrowing and lending of funds for the short term.
• RBI is an apex body that controls the money market.
• The short period of time varies from one day to one year.

Instruments of Money Market:
(i) Commercial Paper:

• Commercial papers were first issued in the Indian money market in 1990.
• They are unsecured debt instruments.
• They can be, therefore, issued only by companies with strong credit ratings.
• They are issued by corporate houses for raising short-term finance mainly to finance their working capital requirements.
• They are issued at a discount rate. They are in the form of promissory notes.
• They are negotiable instruments i.e. they are freely transferable by endorsement and delivery.
• They are issued for a period of 15 days to 1 year.
• Face value is in multiples of ‘5 lakhs.
• The issuing company has to bear all expenses like dealer’s fees, agency fees, etc. related to the uses of the commercial paper.
• The rate of interest varies greatly as it is influenced by various factors such as the economy, the credit rating of the instruments, etc.
• The marketability of these instruments is influenced by the rates prevailing in the call market as well as the foreign exchange market.
• It used to be 30 days and it is further reduced to 15 days w.e.f 25th May 1998.

(ii) Commercial Bills:

• When the goods are sold on credit, the buyer becomes liable to make payment on a specific date in the future.
• The seller draws a bill and the buyer accepts it. On acceptance, the bill becomes a marketable instrument called a Trade Bill.
• When a Trade Bill is accepted by a commercial bank, it is known as a commercial bill.
• The seller draws a bill and the buyer accepts it.
• They are in the form of negotiable instruments.
• They are usually issued for a period of 90 days. But this period can vary between 30 to 90 days.
• The liquidity of this bill is very high.
• It is the most common method to meet the credit needs of trade and industry.
• The bank can rediscount the bills and are able to meet the short-term liquidity requirements.
• The commercial bill lacks development in the money market due to lack of bill culture, high stamp duty, inadequate credit backing, absence of a secondary market, etc.

(iii) Certificate of Deposits:

• Certificate of Deposits was first introduced to the money market of India in 1989.
• They are negotiable term deposit certificates.
• They are issued by commercial banks or financial institutions at discount, at par, or at market rate.
• They are in the form of promissory notes and stamp duty is applicable on the instrument.
• The maturity periods of this instrument are from 15 days to 1 year.
• The subscribers for certificates of deposits are individuals, associations, companies, trusts, etc.
• They are freely transferable by endorsement and delivery after a lock-in period of a minimum of 15 days.

(iv) Treasury Bills:

• Issue/use of Treasury Bills was started by the Indian government in 1917.
• This instrument is issued by the government to institutions or the public for raising short-term funds to bridge the gap between receipts and expenditure.
• It is issued by the government on a discount for a fixed period not exceeding 1 year.
• These bills are in the nature of promissory notes containing a promise to pay the amount stated to the bearer of the instrument.
• The maturity period of this bill is 182 days.
• These bills enjoy a high degree of liquidity.

(v) Government Securities:

• The marketable debt issued by the government or by semi-government bodies represents a claim on the government in known as government securities.
• These securities are issued by agencies such as central government, state government, local government such as municipalities, etc.
• These government securities are in the form of stock certificates, promissory notes, and bearer bonds.
• The liquidity is high for securities issued by the central government and limited for the state government and the local government.
• These securities are safe investments as payment of interest and repayment of the principal amount is guaranteed by the government.
• Rebates for investment in these securities are available under the Income Tax and other Acts.

(vi) Money Market Mutual Funds:

• It is a mutual fund that invests solely in money market instruments.
• These are issued by mutual fund organizations.
• They are in the form of debt.
• These mature in less than a year.
• They are very liquid.
• They are the safest and most secure of all mutual funds investments.
• The assets in money market funds are invested in safe and stable instruments of investments issued by the government, banks, corporations, etc.
• These mutual funds allow retail investors the opportunity of investing in money market instruments and benefit from the price advantage.

(vii) Repo Rate:

• It is the repurchase rate which is also known as the official bank rate.
• The repo rate is the discounted interest rate at which a central bank repurchases the government securities.
• It is the transaction that is carried by the central bank with the commercial bank to reduce some of the short-term liquidity in the system.

Question 3.
State the features of the capital market.
Answer:
Meaning:

• Capital markets provide medium and long-term loans to business enterprises.
• SEBI is responsible to control the working of the capital market.
• It attracts saving from people and form capital to the business.
• It is dealing in shares, debentures, bonds, mutual funds, etc.

Features of Capital Market:
Following are the main features of the capital market:
(i) Link between investors and borrowers:
The capital market links investors with the borrowers of funds. It routes money from savers to entrepreneurial borrowers.

(ii) Deals in medium and Long-term investment: A capital market is a market where medium and long-term financial instruments are traded. Through this market corporate, industrial organizations, financial institutions access long-term funds from both, domestic and foreign markets.

(iii) Presence of Intermediaries:
The capital market operates with the help of intermediaries like brokers, underwriters, merchant bankers, collection bankers, etc. These intermediaries are important elements of a capital market.

(iv) Promotes capital formation:
The capital market provides a platform for investors and borrowers of long-term funds to trade. This leads to capital formation in an economy as it mobilizes funds.

(v) Regulated by government rules, regulations, and policies:
The capital market operates freely. However, it is regulated by government rules, regulations, and policies.
For e.g. SEBI is the regulator of Capital markets.

(vi) Deals in marketable and non-marketable securities:
Capital market traders in both, marketable and non-marketable securities. Marketable securities are securities that can be transferred, e.g. Shares, Debentures, etc. and non-marketable securities are those which cannot be transferred, e.g. Term Deposits, Loans, and Advances.

(vii) Variety of Investors:
The capital market has a wide variety of investors. It comprises both, individuals like the general public and institutional investors like Mutual Funds, Insurance companies, Financial Institutions, etc.

(viii) Risk:
Risk is very high here as the instruments have long maturity periods. However, the return on investments is very high.

(ix) Instruments in capital market:

• Equity shares
• Preference shares
• Debentures
• Bonds
• Government securities
• Public Deposits.

(x) Types of Capital Market:
Capital market is mainly classified as-
(i) Government Securities Market or Gilt-edged markets:
In this market, government and semi-government securities are traded.

(ii) Industrial Securities Market:
In this market, industrial securities, i.e. shares and debentures of new or existing corporate are traded. This market is further divided into:

• Primary or New issues Market – Here companies sell fresh shares, debentures, etc. for the first time to the public.
• Secondary Market – Here already existing shares, debentures, etc. are traded through the Stock Exchanges.

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 10 Dividend and Interest Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 10 Dividend and Interest

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Dividend is paid to ____________
(a) Shareholder
(b) Debenture holder
(c) Depositor
Answer:
(a) Shareholder

Question 2.
____________ is profit shared by company with a shareholder.
(a) Interest
(b) Rent
(c) Dividend
Answer:
(c) Dividend

Question 3.
Dividend is recommended by ____________
(a) Managing Director
(b) Secretary
(c) Board of Directors
Answer:
(c) Board of Directors

Question 4.
Interim Dividend is declared by ____________
(a) Board of Directors
(b) Debenture holders
(c) Depositors
Answer:
(a) Board of Directors

Question 5.
Final Dividend is declared by ____________
(a) Board of Directors
(b) Shareholders
(c) Depositors
Answer:
(b) Shareholders

Question 6.
Dividend cannot be declared out of ____________
(a) Capital
(b) Profit
(c) Reserves
Answer:
(a) Capital

Question 7.
Dividend amount should be transferred in a separate Bank Account within ____________ days of its declaration.
(a) 5
(b) 15
(c) 50
Answer:
(a) 5

Question 8.
Dividend should be paid within ____________ days of its declaration.
(a) 3
(b) 13
(c) 30
Answer:
(c) 30

Question 9.
____________ holders get dividend from residual profits.
(a) Equity share
(b) Preference share
(c) Debenture
Answer:
(a) Equity Share

Question 10.
Dividend is paid first to ____________ shareholders.
(a) Equity
(b) Preference
(c) Deferred
Answer:
(b) Preference

Question 11.
____________ warrant is a cheque containing dividend amount sent by company to the shareholders.
(a) Dividend
(b) Share
(c) Interest
Answer:
(a) Dividend

Question 12.
IEPF is created by ____________ where unpaid dividend is transferred by company.
(a) Central Government
(b) Company
(c) Shareholders
Answer:
(a) Central Government

Question 13.
Payment of ____________ Dividend must be authorised by the Articles of Association.
(a) Interim
(b) Final
(c) Bonus
Answer:
(a) Interim

Question 14.
____________ is a return paid to creditors by the company.
(a) Dividend
(b) Interest
(c) Rent
Answer:
(b) Interest

Question 15.
____________ is not linked to profits of the company.
(a) Dividend
(b) Interest
(c) Bonus
Answer:
(b) Interest

1B. Match the pairs.

Question (I).

Group ‘A’	Group ‘B’
(a) Dividend	(1) Equity Shareholders
(b) Interest	(2) Appropriation of Profit
(c) Interim Dividend	(3) Recommendation of Secretary
(d) Final Dividend	(4) Registrar of Company
(e) Fluctuating Rate of Dividend	(5) Obligatory to pay
	(6) Decided and Declared by the Board of Directors
	(7) Decided by Board and Declared by Members
	(8) Decided by President of India
	(9) Company not allowed to pay
	(10) Declared by Government of India

Answer:

Group ‘A’	Group ‘B’
(a) Dividend	(2) Appropriation of Profit
(b) Interest	(5) Obligatory to pay
(c) Interim Dividend	(6) Decided and Declared by the Board of Directors
(d) Final Dividend	(7) Decided by Board and Declared by Members
(e) Fluctuating Rate of Dividend	(1) Equity Shareholders

Question (II).

Group ‘A’	Group ‘B’
(a) Dividend	(1) Inform stock exchange about dividend declaration
(b) Interest	(2) Creditors
(c) IEPF	(3) Registered Shareholders
(d) Unpaid Dividend Account	(4) Balance of Unpaid Dividend Transferred
(e) Listed Company	(5) Unregistered Company
	(6) Non-listed company
	(7) Unpaid/Unclaimed Dividend
	(8) Balance of unpaid bonus transferred here
	(9) Must inform the government about dividend declaration
	(10) General Public

Answer:

Group ‘A’	Group ‘B’
(a) Dividend	(3) Registered Shareholders
(b) Interest	(2) Creditors
(c) IEPF	(4) Balance of Unpaid Dividend Transferred
(d) Unpaid Dividend Account	(7) Unpaid/Unclaimed Dividend
(e) Listed Company	(1) Inform stock exchange about dividend declaration

1C. Write a word or term or a phrase that can substitute each of the following statements.

Question 1.
The return on investment is paid to the shareholders of the company.
Answer:
Dividend

Question 2.
The meeting where the final dividend is declared.
Answer:
AGM (Annual General Meeting)

Question 3.
The company has to intimate the stock exchange about the declaration of dividends.
Answer:
Listed company

Question 4.
The shareholders get dividends at a fixed rate.
Answer:
Preference

Question 5.
The shareholders get dividends at a fluctuating rate.
Answer:
Equity

Question 6.
Request by the shareholder in the prescribed form for payment of dividend into shareholders bank amount.
Answer:
Dividend Mandate

Question 7.
The number of days within which payment of dividend be completed by the company after its declaration.
Answer:
30 days

Question 8.
Dividend declared between two AGMs.
Answer:
Interim Dividend

Question 9.
Dividend decided and declared by the Board.
Answer:
Interim Dividend

Question 10.
The return is paid to the creditors by the company.
Answer:
Interest

1D. State whether the following statements are True or False.

Question 1.
The dividend is paid to registered shareholders of the company.
Answer:
True

Question 2.
The dividend is decided by the Board.
Answer:
True

Question 3.
The dividend is decided by the shareholders.
Answer:
False

Question 4.
Dividend once declared cannot be revoked.
Answer:
True

Question 5.
Dividend cannot be paid out of capital.
Answer:
True

Question 6.
Shareholders decide about the rate and amount of profit to be given as dividends.
Answer:
False

Question 7.
All categories of shareholders get a fixed-rate dividend.
Answer:
False

Question 8.
IEPF is the fund created by the company.
Answer:
False

Question 9.
Interest is a liability for the company.
Answer:
True

Question 10.
Interest is paid to shareholders of the company.
Answer:
False

1E. Find the odd one.

Question 1.
Final Dividend, Interim Dividend, Interest
Answer:
Interest

Question 2.
Out of Capital, Out of free reserve, Out of money given by the government
Answer:
Out of Capital

Question 3.
Dividend Account, Dividend Mandate, Unpaid/ Unclaimed Dividend Account
Answer:
Dividend Mandate

Question 4.
Dividend warrant, Dividend Mandate, Cheque
Answer:
Dividend Mandate

1F. Complete the sentences.

Question 1.
Word dividend is derived from Latin term ____________
Answer:
Dividendum

Question 2.
Dividend is paid to ____________
Answer:
registered shareholders

Question 3.
Dividend can be declared only on recommendation of ____________
Answer:
Board of Directors

Question 4.
Dividend must be paid in ____________
Answer:
cash

Question 5.
The meeting at which final dividend is approved is ____________
Answer:
Annual General Meeting

Question 6.
Dividend cannot be paid out of ____________
Answer:
capital

Question 7.
Interim dividend is decided and declared by ____________
Answer:
Board of Directors

Question 8.
Predecided and a fixed rate of dividend is paid to ____________
Answer:
preference shareholder

Question 9.
Payment of dividend must be completed within ____________
Answer:
30 days

Question 10.
Payment of Interim Dividend needs to be authorized by ____________
Answer:
Articles of Association

Question 11.
The obligatory payment made by company to its creditors is called as ____________
Answer:
Interest

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(a) Dividendum	(1) ………………..
(b) Interest	(2) ………………..
(c) …………………	(3) Final Dividend
(d) ………………..	(4) Interim Dividend
(e) Government Fund	(5) …………………

(Latin term, Creditors, At AGM, At Board Meeting, IEPF)
Answer:

Group ‘A’	Group ‘B’
(a) Dividendum	(1) At Board Meeting
(b) Interest	(2) Latin term
(c) IEPF	(3) Final Dividend
(d) At AGM	(4) Interim Dividend
(e) Government Fund	(5) Creditors

Question 2.

Group ‘A’	Group ‘B’
(a) Preference Shares	(1)  ……………………
(b) Equity Shares	(2) ……………………..
(c) Deposit holders	(3) ……………………..
(d) …………………….	(4) Payment of Dividend
(e) …………………….	(5) Dividend Declared but not paid/claimed

(Fixed rate Dividend, Dividend at a Fluctuating Rate, Interest, within 30 days, Unclaimed/Unpaid Dividend)
Answer:

Group ‘A’	Group ‘B’
(a) Preference Shares	(1) Unclaimed/Unpaid Dividend
(b) Equity Shares	(2) Within 30 days
(c) Deposit holders	(3) Interest
(d) Fixed rate of Dividend	(4) Payment of Dividend
(e) Dividend at a Fluctuating Rate	(5) Dividend Declared but not paid/claimed

1H. Answer in one sentence.

Question 1.
What is Dividend?
Answer:
The dividend is a share in distributable profits of the company to which the shareholder in entitled when formally declared by the company.

Question 2.
Who has the right to recommend dividends?
Answer:
The Board of directors has the right to recommend.

Question 3.
What is a Final Dividend?
Answer:
The final dividend is that dividend that is declared and paid after the close of the financial year.

Question 4.
What is an Interim Dividend?
Answer:
The interim dividend is that dividend that is declared and paid between two AGMs of an accounting year.

Question 5.
Who declares Interim Dividend?
Answer:
The Board of directors declares Interim dividends.

Question 6.
Which shares get dividends at a fixed rate?
Answer:
Preference shares get dividends at a fixed rate.

Question 7.
Which shares get dividends at a fluctuating rate?
Answer:
Equity shares get dividends at a fluctuating rate.

Question 8.
At which meeting Interim Dividend is decided and declared?
Answer:
Interim Dividend is decided and declared in Board Meeting.

Question 9.
What is Interest?
Answer:
Interest is the price paid for the productive services rendered by capital

Question 10.
State the time within which unpaid dividends be transferred to the unpaid dividend account.
Answer:
The unpaid dividend should be transferred within 7 days of the end of 30 days within which payment has to be made.

1I. Correct the underlined word and rewrite the following sentences.

Question 1.
The dividend is paid to creditors.
Answer:
The dividend is paid to shareholders.

Question 2.
Interest is paid to shareholders.
Answer:
Interest is paid to creditors.

Question 3.
The final Dividend is paid between two AGM.
Answer:
Interim Dividend is paid between two AGM.

Question 4.
Special Resolution must be passed to declare the Final Dividend.
Answer:
An ordinary resolution must be passed to declare the Final Dividend.

Question 5.
The dividend must be paid within 60 days of its declaration.
Answer:
The dividend must be paid within 30 days of its declaration.

Question 6.
The Dividend to be paid should be transferred to Dividend A/c within 30 days of its declaration.
Answer:
The Dividend to be paid should be transferred to Dividend A/c within 5 days of its declaration

Question 7.
The dividend is an obligation to be paid by a company every year.
Answer:
Interest is an obligation to be paid by a company every year.

Question 8.
Preference shareholders are given the last priority in the payment of dividends.
Answer:
Equity shareholders are given the last priority in the payment of dividends.

Question 9.
Preference shareholders get dividends from residual profits.
Answer:
Equity shareholders get dividends from residual profits.

Question 10.
Dividend is payable every year irrespective of profits made by the company.
Answer:
Interest is payable every year irrespective of profits made by the company.

1J. Arrange in proper order.

Question 1.
(a) Recommendation of Dividend.
(b) Checking sufficiency of profits
(c) Board Meeting
Answer:
(a) Checking sufficiency of profits
(b) Board Meeting
(c) Recommendation of Dividend

Question 2.
(a) Transfer to Dividend Account
(b) Transfer to IEPF
(c) Transfer to Unpaid Dividend Account
Answer:
(a) Transfer to Dividend Account
(b) Transfer to Unpaid Dividend Account
(c) Transfer to IEPF

Question 3.
(a) Closure of Register of Members.
(b) Intimate Stock Exchange of Board Meeting.
(c) Intimate Stock Exchange of declaration of dividend.
Answer:
(a) Intimate Stock Exchange of Board Meeting
(b) Intimate Stock Exchange of declaration of dividend
(c) Closure of Register of Members

Question 4.
(a) Decision on Rate of Dividend
(b) Transfer of IEPF
(c) Payment of Dividend
Answer:
(a) Decision on Rate of Dividend
(b) Payment of Dividend
(c) Transfer to IEPF

Question 5.
(a) Payment of Interim Dividend
(b) Board meeting deciding and declaring Interim Dividend
(c) Authorization of Articles of Association
Answer:
(a) Authorization of Articles of Association
(b) Board meeting deciding and declaring Interim Dividend
(c) Payment of Interim Dividend

2. Explain the following terms/concepts.

Question 1.
Profit
Answer:
Profit is the financial gain from business activity minus expenses. Profit is the income remaining after deducting total costs from total revenue. It is also called financial gain. Profit is the difference between revenues and expenses for a given period. It is the tool for measuring the success of the business. Without profit, the company cannot survive in the market.

Question 2.
Dividend
Answer:
The term dividend is derived from the Latin word ‘Dividendum’ which means that which is to be divided. A dividend is the portion of the company’s earnings distributed to the shareholders decided and managed by the company’s board of directors. The dividend is a share in distributable profits of the company Shareholder is entitled to receive the dividend when it is formally declared by the company

Question 3.
Interest
Answer:
Interest is the cost of borrowing money typically expressed as an annual percentage of a loan. The money people earn on their savings is called Interest. Interest is paid to the lender by the borrower, in case of a loan or from the financial institution to the depositor, in the case of a savings account. In financial terms, it is a payment made for using the money of another i.e. borrower takes money from the lender. Interest is the cost of renting the money for the borrower and it is the income from lending money for the lender.

Question 4.
Final Dividend
Answer:
The final dividend is declared and paid after the financial year is closed. The final dividend is decided and recommended by the Board of Directors. The final dividend is approved by the shareholder in the AGM. The declaration of the final dividend does not require authorization of Articles of Association. The rate of the final dividend is always higher than the Interim dividend. It is declared from sources like the current year’s profits, money provided by Government for dividends, etc.

Question 5.
Interim Dividend
Answer:
The interim dividend is the dividend that is declared and paid in the middle of an accounting year i.e. before the finalization of accounts for the year. Dividend declared by the Board of Directors between two Annual General Meetings is called Interim Dividend. The interim dividend is paid in the middle of the accounting year.

Question 6.
Unpaid Dividend
Answer:
Dividend declared by the company but neither paid to nor claimed by a shareholder within 30 days of its declaration is termed as Unpaid and Unclaimed Dividend.

Question 7.
Unpaid Dividend Account
Answer:
A dividend declared by the company but neither paid to nor claimed by a shareholder is called an Unpaid/Unclaimed Dividend. This unpaid/unclaimed dividend should be transferred to the Unpaid/Unclaimed Account within 30 days of its declaration. This ‘Unpaid Dividend Account’ is opened in a scheduled Bank by the company.

Question 8.
Dividend Mandate
Answer:
The dividend is paid by different modes of payment like cash, cheque, or warrant or by electronic mode. It can also be paid by using the Dividend Mandate. If the shareholder wishes to get dividend credited directly in the Bank Account he is required to send a request in a prescribed form which is called ‘Dividend Mandate’. The dividend Mandate authorizes the company to pay dividends directly to shareholders’ bankers.

Question 9.
IEPF
Answer:
IEPF means Investors Education and Protection Fund. Any amount in the Unpaid Dividend Account of a company that is unpaid/ unclaimed for a period of 7 (seven years) from the date of such a transfer shall be, transferred to ‘Investors Education and Protection Fund’. The claimant can claim his dividend by filling the prescribed form and submitting the necessary documents. The claimant needs to follow the procedure.

Question 10.
Rate of Dividend
Answer:
The return that a shareholder receives on his investment from the company is called a dividend. The dividend is always declared by the company on the face value of a share irrespective of its market value. The rate of dividend is expressed as a percentage of the face value of a share per annum.

3. Study the following case/situation and express your opinion.

1. LMN Co Limited decides to declare a dividend for the financial year 2018-19 in which it has earned profits less than their expectations.

Question (a).
Is Board right in recommending a dividend of Rs. 5/- per share out of free reserves?
Answer:
Yes, Board is right in recommending a dividend of Rs. 5/- per share out of free reserves, as dividends can be paid out of free reserves.

Question (b).
Can Board declare the dividend though it is not approved by AGM?
Answer:
No Board cannot declare the divided if it is not approved by AGM as dividends should be approved by shareholders by passing an ordinary resolution in AGM.

Question (c).
Can the Board give dividends in the form of gifts?
Answer:
No Board cannot give dividends in the form of gifts. It must be paid in cash, not in kind.

2. ABC Co. Ltd. decides to pay Interim Dividend.

Question (a).
Can it be paid out of free reserves?
Answer:
No. the Interim Dividend cannot be paid out of free reserves.

Question (b).
Is the Board right in declaring the same at the Board Meeting?
Answer:
Yes. Board is right in declaring the same at the Board meeting as it has the power to declare an Interim Dividend.

Question (c).
Can the company distribute the same within 30 days of its declaration?
Answer:
Yes, after the declaration, the Interim dividend should be paid within 30 days of its declaration.

3. RAJ Company limited decides to pay Interim Dividend.

Question (a).
Is the Board justified to decide Interim Dividend of Rs. 5/per share even though profits to date are insufficient?
Answer:
The interim dividend is paid out of profits between two annual general meetings. It cannot be paid out of any reserves. So it is not justified.

Question (b).
Can the Board declare it out of Free Reserves?
Answer:
No Board cannot declare an Interim dividend out of free reserves.

Question (c).
Can the Board declare it out of Capital?
Answer:
No Board cannot declare out of capital.

4. DIAMOND Co. Ltd. is considering declaring an Interim Dividend.

Question (a).
In how many days of the declaration it should transfer the funds to Dividend Account?
Answer:
The interim dividend must be transferred to the Dividend Account within 5 days of its declaration.

Question (b).
In how many days it must pay it to shareholders?
Answer:
The interim dividend should be paid within 30 days of its declaration to shareholders.

Question (c).
In how many days of the declaration it must transfer the funds to the Unpaid Dividend A/c?
Answer:
Unpaid/unclaimed Interim dividend should be transferred to ‘Unpaid Dividend Account’ within 7 days of the expiry of 30 days of declaration i.e. 37 days of its declaration.

5. The Board of Directors of STAR Co. Ltd. which is a listed company recommends a dividend of Rs. 15/- per share to be paid in cash.

Question (a).
Is it justified to pay the dividend firstly to its Preference Shareholders and then after to Equity Shareholders?
Answer:
Yes, because preference shares are entitled to the dividend before it is paid to the equity shareholder. Equity shareholders get dividends from residual profits i.e. after paying to preference shareholders.

Question (b).
Is the AGM required to approve the same?
Answer:
Yes for declaration of final divided Approval of AGM is a must.

Question (c).
Can the company pay dividends in cash?
Answer:
Yes, the company pay a dividend in cash and not in kind.

6. GOLD Co. Ltd. declares a dividend of Rs. 10/- per share for F.Y. 2018-19.

Question (a).
Is the company under default, if the dividend was not paid within 30 days of its declaration?
Answer:
Yes, the company is to default as the time limit within which the company must pay dividends after the declaration is 30 days.

Question (b).
Is the company right in transferring the unpaid dividend to its Debenture Reserve Account?
Answer:
No, the company has to transfer the total amount of dividend which remains unpaid/unclaimed to the ‘Unpaid Dividend Account.

Question (c).
Does the company have to transfer the amount of unpaid dividend to IEPF after 30 days?
Answer:
No, any amount in the unpaid dividend account of a company that remains unpaid/unclaimed for a period of 7 years from the date of such a transfer, should be transferred to (IEPF), ‘Investors Education and Protection Fund’.

4. Distinguish between the following:

Question 1.
Final Dividend and Interim Dividend
Answer:

Points	Interim Dividend	Final Dividend
1. Meaning	Interim Dividend is the dividend that is declared between two Annual General Meetings of a company.	The final Dividend is the dividend that is declared at the Annual General Meeting of a company.
2. When declared?	It is declared between two Annual General Meetings.	It is declared after the completion of the financial year of the company.
3. Who declares?	The interim dividend is declared by the Board of Directors by passing a resolution.	The final dividend is decided and recommended by the Board of Directors. It is declared by the shareholders.
4. Authorization	Authorization of Articles is necessary for the declaration of interim dividends.	Authorization of Articles is not necessary for the declaration of the final dividend.
5. Rate of Dividend	The rate of the Interim dividend is lower than the final dividend.	The rate of the final dividend is always higher than the Interim dividend.
6. Source	It is declared out of profits of the current accounting year.	It is declared from different sources like the current year’s profits, free reserves, capital profits, money provided by Government for dividends, etc.
7. Accounting Aspect	It is declared before the preparation of the final accounts of the company.	It is declared only after the accounts of the year are prepared and finalized.

Question 2.
Dividend and Interest
Answer:

Points	Dividend	Interest
1. Meaning	The dividend is the return payable to the shareholders of the company for their investment in the share capital.	It is the return payable to the creditors of the company. For e.g. Debenture holder, Deposit holders.
2. Intervals	Dividends need not be paid on regular basis and they can vary according to the company’s profits.	Interest has to be paid at regular intervals at a fixed rate.
3. Given to whom	It is paid to the member i.e. the owners of the company.	It is paid to the creditor of the company.
4. Expense	Dividends are not the expense as they are based on the profit made. If no profit, they are not paid for that period.	Interest is the expense to the company.
5. Rate of Dividend	The rate of the Interim dividend is lower than the final dividend.	The rate of the final dividend is always higher than the Interim dividend.
6. Obligation	It has to be paid only when the company made profits.	It is not linked to the Profits of the company. It is an obligation for the company.
7. When payable	It is payable when a company earns sufficient profit.	It is payable every year irrespective of the profits of the company.
8. Rate	It is paid at a fluctuating rate to the equity shareholders.	The rate of Interest is Fixed and pre-determined at the time of issue of the security.

5. Answer in brief.

Question 1.
State any four points to be kept in mind by a listed company with respect to dividends.
Answer:
When a company lists its shares on Stock Exchange, additional listing agreements are to be followed which are as follows:

• Stock exchange should be informed if the securities are listed 2 days prior to the Board meeting in which recommendation of final dividend is to be considered.
• Stock Exchange should be informed immediately regarding the declaration of dividend as soon as the Board meeting gets over.
• Notice of closing book should be informed at least 7 (seven) working days before the closure to the stock exchange.
• Transfer Register and Register of Members should be closed.

Question 2.
Discuss any four features of dividend.
Answer:

• It is the portion of profits of the company paid to its shareholders.
• It is payable out of profits of the company.
• It is an unconditional payment made by the company.
• If the company has issued equity shares with differential rights as to dividend, the terms of issue of such shares will govern the rights of shareholders about receiving the dividend.

Question 3.
Explain the features of interest.
Answer:
Interest is the cost of borrowing money typically expressed as an annual percentage of a loan. The money people earn on their savings is called Interest. Interest is paid to the lender by the borrower in case of a loan or from the financial institution to the depositor in the case of a savings account. In financial terms, it is a payment made for using the money of another i.e. borrower takes money from the lender. Interest is the cost of renting the money for the borrower and it is the income from lending money for the lender.
Features:

• Interest is the price paid for the productive services rendered by capital.
• Interest has a direct relation with risk. The higher the risk, the higher is the interest.
• The rate of interest is expressed as the annual percentage of the principal.
• The rate of interest is determined by various factors like money supply, fiscal policy, the volume of borrowings, rate of inflation, etc.
• Interest is a charge against the profit of the Company. Even if, the company makes no profit, interest should be paid.
• The rate of interest is fixed and pre-determined.

6. Justify the following statements.

Question 1.
The dividend is paid out of the profits of the company.
Answer:

• The dividend is the portion of profits of the company paid to its shareholders.
• It is payable out of profits of the company.
• Dividend can be paid out of capital profits on fulfilling these conditions.
• Capital Profits are realized in cash.
• Articles of Association of the company permit such a distribution.
• It remains as profits after revaluation of all assets and liabilities.
• Thus, it is rightly justified that dividend is paid out of profits of the company.

Question 2.
Interim dividends cannot be paid out of free reserves.
Answer:

• Dividend declared by the Board of Directors between two Annual General Meetings is called Interim Dividend.
• The interim dividend shall not be declared out of free reserves.
• In the event of a loss or inadequacy of profits during a financial year, no interim dividend shall be declared.
• The declaration of an interim dividend does not create a debt against a company.
• The board of directors can cancel an interim dividend after declaring it.
• Thus, it is rightly justified that Interim dividends cannot be paid out of reserves.

Question 3.
Annual General Meeting (AGM) is crucial for Final Dividend.
OR
The final Dividend is declared only after the accounts are prepared and finalized.
Answer:

• The final dividend is that dividend that is declared and paid after the closing of the financial year.
• It is decided and recommended by the Board of Directors.
• The rate of final dividend is declared by the shareholders in the AGM.
• It is declared only after the account of the year is prepared and finalized.
• Thus, it is rightly said that AGM is crucial for the Final Dividend. OR Final Dividend is declared only after the accounts are prepared and finalized.
• The final dividend is declared from different sources, and its declaration does not need the authorization of articles.
• Thus, it is rightly said that AGM is crucial for the Final Dividend. OR Final Dividend is declared only after the accounts are prepared and finalized.

Question 4.
Listed Company has to follow additional guidelines on dividend matters.
Answer:

• Notify stock exchange where company’s securities are listed at least 2 (two) days in advance of the date of the meeting of the Board at which recommendation of final dividend is to be considered.
• Intimate Stock Exchange immediately about the declaration of the dividend after the Board Meeting.
• Give notice of Book closure to the stock exchange at least 7(seven) working days before the closure.
• Close the Register of members and the Transfer Register.
• It must use an electronic mode of payment such as Electronic Clearing Services (ECS) or National Electronic Fund Transfer (NEFT); as approved by the Reserve Bank of India (RBI)
• The listed company has to express the dividend on a per-share basis only.

Question 5.
Equity shareholders get the last priority in receiving dividends.
Answer:

• The dividend is the portion of profits of the company paid to its shareholders.
• The dividend is payable only to the registered shareholders of the company.
• Preference shareholders are entitled to the dividend before it is paid to the equity shareholders.
• The equity shares do not enjoy a preference for dividends.
• They do not have priority for the payment of capital at the time of liquidation.
• Equity shareholders will get dividends from residual profit i.e. after paying to preference shareholders and arrears of dividend on cumulative preference shares.
• The equity shares get the last priority in dividends and thus are the residual claimants.
• Thus, it is rightly said that the equity shareholders get the last priority in receiving dividends.

Question 6.
Unpaid dividends cannot be used by the company.
Answer:

• The dividend declared by the company but has not been paid to or claimed by a shareholder within 30 days of its declaration is termed as an unpaid dividend.
• The total amount of dividend which remains unpaid should be transferred to ‘Unpaid Dividend Account’.
• Any amount in the Unpaid Dividend Account of a Company that remains unpaid/unclaimed for a period of 7 years will be transferred to ‘Investors Education and Protection Fund’.
• The company cannot use unpaid dividends. The only claimant of money can claim for it by following certain procedures.
• Thus, it is rightly said that unpaid dividends cannot be used by the company.

Question 7.
Interest is a liability/obligation of the company.
OR
Interest is paid to the creditor of the company.
Answer:

• Interest is a payment made for using another money So it is the cost of renting the money for the borrower and it is the income from lending money for the lender.
• The company has to pay interest, if it has borrowed money from creditors like Debenture holders, Depositors, Bondholders, etc.
• Interest is the liability of the company as it is a payment made for using money from the lender.
• Interest is a charge against the profit of the company.
• Even if, the company makes no profit, it has to pay interest to borrowers.
• Thus, it is rightly said that interest is a liability/ obligation for the company.

Question 8.
Approval of members is not needed for Interim Dividends.
Answer:

• Dividend declared by the Board of Directors between two Annual General Meetings is called Interim Dividend.
• It is paid in the middle of the accounting year.
• It is declared out of profits of the current account year.
• It is declared before the preparation of final accounts of the company.
• The Board of Directors has the power to declare Interim Dividend.
• Articles of Association’ of the Company must authorize the Board of Directors to declare an interim dividend.
• The Board Meeting has to pass a resolution for declaring the Interim dividend.
• Thus, it is rightly said that approval of members is not needed for Interim dividends.

7. Answer the following questions.

Question 1.
Define Dividend and explain its features.
Answer:
The term dividend is derived from the Latin word ‘Dividendum’ which means that which is to be divided. A dividend is the portion of the company’s earnings distributed to the shareholders decided and managed by the company’s board of directors.
The dividend is a share of distributable profits of the company. A shareholder is entitled to receive the dividend when it is formally declared by the company.
Definitions:

• The Institute of Chartered Accountants of India has defined Dividend “as a distribution to shareholders out of profits or reserves available for this purpose”.
• The Supreme Court has defined it as “In case of going – concern, it means the portion of profits of a company, which is allotted to the holders of shares in a company”.

Features of Dividend:

• It is the portion of profits of the company paid to its shareholders.
• It is payable out of profits of the company.
• It is an unconditional payment made by the company.
• The company pays dividends to the equity shareholders and preference shareholders only.
• If the company has issued equity shares with differential rights as to dividend, the terms of issue of such shares will govern the rights of shareholders about receiving the dividend.
• A dividend cannot be declared out of capital.
• Recommendation of the Board of Directors is necessary for the declaration of dividends.
• The dividend is recommended and approved by the Board of Directors by passing a resolution at the Annual General Meeting.
• The previous year’s dividend cannot be declared if that particular year’s Annual Account has been approved in the AGM.
• Dividend once approved and declared by shareholders, creates a debt. It cannot be revoked.
• The dividend includes the interim dividend.
• The dividend must be paid in cash, cheque or transferred through ECS or NEFT and not in kind.
• The dividend is to be paid on the paid-up value of shares.
• Dividend cannot be paid on calls paid in advance.

Question 2.
What is Interest? Explain its features.
Answer:
Interest is the cost of borrowing money typically expressed as an annual percentage of a loan. The money people earn on their savings is called Interest. Interest is paid to the lender by the borrower in case of a loan or from the financial institution to the depositor in the case of a savings account. In financial terms, it is a payment made for using the money of another i.e. borrower takes money from the lender. Interest is the cost of renting the money for the borrower and it is the income from lending money for the lender.
Features:

• Interest is the price paid for the productive services rendered by capital.
• Interest has a direct relation with risk. The higher the risk, the higher is the interest.
• The rate of interest is expressed as an annual percentage of the principal.
• The rate of Interest is determined by various factors like money supply, fiscal policy, the volume of borrowings, rate of inflation, etc.
• Interest is a charge against the profit of the Company. Even if the company makes no profit, interest should be paid.
• The rate of interest is fixed and pre-determined.

Question 3.
Discuss legal provisions for declaration of dividend.
Answer:
The term dividend is derived from the Latin word ‘Dividendum’ which means that which is to be divided.
A dividend means the profit of a company that is not retained in Legal Provisions for declaration of Dividend.
(i) Board Meeting:

• The Board of Directors has the power and authority to declare the dividend.
• The board meeting is called to pass a resolution to discuss the following points.
• Rate of Dividend and amount of Dividend to be paid.
• Book closure date for dividend.
• Date of Annual General Meeting.
• Bank with which a separate account should be opened to remit the dividend amount.

(ii) Shareholders’ Approval:

• The dividend is approved by shareholders by passing an Ordinary Resolution at the Annual General Meeting.
• Shareholders can declare a lower rate of dividend than what is recommended by the Board but not higher than that.
• Once the dividend is declared at the General Meeting, it cannot be canceled. Hence, the company cannot declare dividends for the second time in that year.

(iii) Separate Bank Account:
The company must deposit the dividend amount in a separate bank account i.e. “Dividend Account” opened in a scheduled bank. The dividend must be transferred to this account within 5 days of its declaration.

(iv) Prohibition to pay Dividend:

• A company cannot declare any dividend on equity shares if the company has failed to repay the deposit or any interest on the deposit.
• If the company is found guilty at the time of Payment of Interest to debenture holders, Redemption of Debentures and Preference Shares, Payment of Interest to a financial institution, etc. in that case no dividend can be declared.

Question 4.
Explain Interim Dividend.
Answer:

• The interim dividend is the dividend that is declared and paid in the middle of an accounting year i.e. before the finalization of accounts for the year. Dividend declared by the Board of Directors between two Annual General Meetings is called Interim Dividend.
• The interim dividend is paid in the middle of the accounting year.
• The interim dividend is declared by the Board of directors during any financial year out of surplus in the profit and loss account and out of profits of the financial year.

Features of Interim Dividend:

• The Board of Directors has the power to declare an interim dividend.
• Interim Dividend is only payment on account of the whole dividend for the year.
• The company should provide depreciation for the entire year and not for a part of the year before declaring an interim dividend.
• Interim dividends cannot be paid out of any reserves.
• The Board of directors can declare interim dividend only when it is mentioned in the Articles of Association of the Company.
• A resolution has to be passed in the Board Meeting for declaring the Interim Dividend.
• A separate Bank account should be maintained in a scheduled bank to credit the interim dividend within 5 (five) days of its declaration.
• Interim Dividend should be paid within 30 days of its declaration.
• Unpaid/Unclaimed dividend should be transferred to ‘Unpaid Dividend Account’ within 7 days of the expiry of 30 days of declaration i.e. 37 days of its declaration.
• Any amount remaining Unpaid/Unclaimed in the ‘Unpaid Dividend Account’ for 7 (seven) years should be transferred to IEPF.

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 9 Depository System Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 9 Depository System

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
In physical mode, securities are held in ____________ form.
(a) Paper
(b) Dematerialization
(c) Electronic
Answer:
(a) Paper

Question 2.
Risk of losing certificates exist in ____________ mode.
(a) Physical
(b) Dematerialization
(c) Digital
Answer:
(a) Physical

Question 3.
In Depository system, securities are held in ____________ form.
(a) Scrip based
(b) Electronic
(c) Physical
Answer:
(b) Electronic

Question 4.
____________ is the institute which facilitates electronic holding of securities.
(a) Depository Participant
(b) Issuer
(c) Depository
Answer:
(c) Depository

Question 5.
There is no payment of ____________ when securities are demated.
(a) Octroi
(b) Wealth Tax
(c) Stamp Duty
Answer:
(c) Stamp Duty

Question 6.
Depository Act was passed in ____________
(a) 1919
(b) 1996
(c) 1999
Answer:
(b) 1996

Question 7.
India has a ____________ depository system.
(a) Sole
(b) Multi
(c) Single
Answer:
(b) Multi

Question 8.
____________ is a constituent of depository system.
(a) Government
(b) Issuer
(c) Trust
Answer:
(b) Issuer

Question 9.
____________ is the oldest depository in India.
(a) Dow Jones
(b) NSDL
(c) CDSL
Answer:
(b) NSDL

Question 10.
Demat account is opened by ____________
(a) Beneficial owner
(b) CDSL
(c) SEBI
Answer:
(a) Beneficial owner

Question 11.
Demated shares are ____________
(a) Non-transferable
(b) Fungible
(c) Bearer
Answer:
(b) Fungible

Question 12.
____________ is a unique code given to a security.
(a) IBM
(b) BBM
(c) ISIN
Answer:
(c) ISIN

Question 13.
In India ISIN for corporate securities is allotted by ____________
(a) NSDL
(b) Central Government
(c) State Government
Answer:
(a) NSDL

Question 14.
____________ has to apply for ISIN.
(a) Company
(b) Depository Participant
(c) Depositors
Answer:
(a) Company

Question 15.
____________ has to pay charges to maintain Demat Account.
(a) Investor
(b) Issuer
(c) Depositor
Answer:
(a) Investor

Question 16.
NSDL is promoted by ____________
(a) NSE
(b) BSE
(c) FTSE
Answer:
(a) NSE

Question 17.
CDSL is promoted by ____________
(a) NSE
(b) BSE
(c) FTSE
Answer:
(b) BSE

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
(a) Bad delivery	(1) 1956
(b) Depository Act	(2) A 12 digits number code
(c) ISIN	(3) Connects Government and Bank
(d) Depository Participant	(4) Second Depository in India
(e) CDSL	(5) The issuer company
(f) Depository	(6) Problem faced in physical mode
(g) Beneficial owner	(7) A 10 digits number/code
	(8) Connect depository and investor
	(9) First depository in the world
	(10) Custodian of securities in electronic form
	(11) Problem faced in electronic mode
	(12) 1996
	(13) Government organization
	(14) The investor

Answer:

Group ‘A’	Group ‘B’
(a) Bad delivery	(6) Problem faced in physical mode
(b) Depository Act	(12) 1996
(c) ISIN	(2) A 12 digits number code
(d) Depository Participant	(8) Connect depository and investor
(e) CDSL	(4) Second Depository in India
(f) Depository	(10) Custodian of securities in electronic form
(g) Beneficial owner	(14) The investor

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
This mode of holding securities may result in loss and theft of certificates.
Answer:
Physical mode of securities

Question 2.
The organization holds the securities in electronic mode.
Answer:
Depository

Question 3.
This system eliminates storing of certificates.
Answer:
Depository system

Question 4.
This system allows faster and easier transfer of securities.
Answer:
Depository system

Question 5.
The oldest Depository of India.
Answer:
NSDL (National Security Depository limited)

Question 6.
The country where the Depository system started for the first time.
Answer:
Germany

Question 7.
The registered owner of securities.
Answer:
Beneficial Owner

Question 8.
The agent of the Depository.
Answer:
Depository Participant

Question 9.
This process converts securities into an electronic form from a physical form.
Answer:
Dematerialization

Question 10.
This process converts securities into physical form from electronic form.
Answer:
Rematerialization

Question 11.
This means securities are without distinctive identity numbers.
Answer:
Fungibility

Question 12.
This is the unique code for security given in the Depository system.
Answer:
International Securities Identification Number

1D. State whether the following statements are true or false.

Question 1.
The physical mode of holding Securities is risky.
Answer:
True

Question 2.
Allotment of Securities takes a longer time when in physical mode.
Answer:
True

Question 3.
Transfer of Securities is easier in electronic mode.
Answer:
True

Question 4.
Bad delivery is likely in the Depository system.
Answer:
False

Question 5.
The depository system began in the USA for the first time in the world.
Answer:
False

Question 6.
India has a multi-depository system.
Answer:
True

Question 7.
The depository system is very similar to the banking system.
Answer:
True

Question 8.
DP is a constituent of the Depository system.
Answer:
True

Question 9.
DP is an Agent of the Depository.
Answer:
True

Question 10.
A bank can work as a DP.
Answer:
True

Question 11.
DRF is required for conversion from physical to electronic.
Answer:
True

Question 12.
ISIN is a unique code given to the specific Securities.
Answer:
True

1E. Find the odd one.

Question 1.
Elimination of storage of certificates, theft of certificates, torn certificates
Answer:
Elimination of storage of certificates

Question 2.
NSDL, CDSL, NBFC
Answer:
NBFC

Question 3.
Depository, DP, RBI
Answer:
RBI

Question 4.
DP, BO, State Government
Answer:
State government

Question 5.
Issuer, BO, Central Government
Answer:
Central government

Question 6.
DRF, RRF, PPF
Answer:
PPF

1F. Complete the sentences.

Question 1.
Central location for keeping Securities in demated form is ____________
Answer:
Depository

Question 2.
Freezing of debit/credit of Securities is possible in ____________
Answer:
Dematerialized Securities

Question 3.
First Depository of the world started in the year ____________
Answer:
1947

Question 4.
The Indian Depository Act was passed in the year ____________
Answer:
1996

Question 5.
Link between Depository and investor is ____________
Answer:
Depository participant

Question 6.
Account of Securities of the investor is maintained by ____________
Answer:
Depository Participant

Question 7.
The process which converts physical Securities in electronic form is ____________
Answer:
Dematerialization

Question 8.
The process which converts digital Securities in physical form is ____________
Answer:
Rematerialization

Question 9.
The issuer company must register with ____________
Answer:
Depository

Question 10.
The unique code identifying a security is ____________
Answer:
(ISIN) International Securities Identification Number

Question 11.
The first Depository of India is ____________
Answer:
NSDL (National Security Depository Limited)

1G. Select the correct option from the bracket.

Question (I).

Group ‘A’	Group ‘B’
(a) Dematerialization	(1) ………………..
(b) ……………………..	(2) DP
(c) First Depository of world	(3) …………………
(d) CDSL	(4) ………………..

(1999, Agent of Depository, Germany, Physical to electronic)
Answer:

Group ‘A’	Group ‘B’
(a) Dematerialization	(1) Physical to Electronic
(b) Agent of Depository	(2) DP
(c) First Depository of world	(3) Germany
(d) CDSL	(4) 1999

Question (II).

Group ‘A’	Group ‘B’
(a) First Depository in India	(1) …………………………
(b) ……………………..	(2) Rematerialisation
(c) Fungibility	(3) …………………………
(d) ……………………	(4) ISIN

(12 digital code, NSDL, Electronic to physical, No distinctive number)
Answer:

Group ‘A’	Group ‘B’
(a) First Depository in India	(1) NSDL
(b) Electronic to Physical	(2) Rematerialisation
(c) Fungibility	(3) No distinctive number
(d) 12 digital code	(4) ISIN

1H. Answer in one sentence.

Question 1.
What is the Depository system?
Answer:
A depository system is a system where Securities are held in electronic form.

Question 2.
Give examples of actions termed as corporate action.
Answer:
Payment of dividend, issue of Bonus Shares, offering of right Shares, Early Redemption of Debentures, Mergers and Acquisitions, etc.

Question 3.
When was Depository Act passed in India?
Answer:
Depository Act was passed in India in the year 1996.

Question 4.
What is a DP?
Answer:
DP means Depository participant, who is an agent of Depository.

Question 5.
What is Dematerialisation?
Answer:
Dematerialization is the process of converting physical Securities into electronic.

Question 6.
What is Rematerialization?
Answer:
Rematerialization is the process of converting electronic Securities into physical.

Question 7.
What is ISIN?
Answer:
ISIN is the unique code given to the specific Securities of the company. ISIN refers to ‘International Securities Identification Number’.

Question 8.
Name the Depositories in India?
Answer:

• National Security Depository Limited (NSDL)
• Central Depository Services Limited (CDSL)

1I. Correct the underlined words and rewrite the following sentences.

Question 1.
The electronic mode of holding Securities is risky.
Answer:
The physical mode of holding Securities is risky.

Question 2.
Allotment and Transfer of Securities are time-consuming in electronic mode.
Answer:
Allotment and Transfer of Securities are time-consuming in physical mode.

Question 3.
Banking system leads to a script less capital market.
Answer:
Depository system leads to a scriptless capital market.

Question 4.
Storage of certificates is not required in the physical mode of holding.
Answer:
Storage of certificates is not required in the electronic mode of holding.

Question 5.
India has a single Depository system.
Answer:
India has a multi Depository system.

Question 6.
Depository participant in India has to register under the Partnership Act.
Answer:
Depository participant in India has to register under the Depository Act.

Question 7.
Demat accounts are opened and maintained by the Depository.
Answer:
Demat accounts are opened and maintained by the Depository Participant.

Question 8.
Securities are fungible in physical mode.
Answer:
Securities are fungible in electronic mode.

Question 9.
ISIN is a code given to a company.
Answer:
ISIN is a code given to the security of a company.

Question 10.
ISIN of Indian government Securities is issued by NSDL.
Answer:
ISIN of Indian government Securities is issued by RBI.

1J. Arrange in proper order.

Question 1.
(a) Gets statement of Account
(b) Open Demat Account
(c) Submit DRF
Answer:
(a) Submit DRF
(b) Open Demat Account
(c) Gets statement of Account

Question 2.
(a) Investor (BO) submits an application for Securities to the issuer company
(b) Depository intimates the DP about crediting Bo’s Account
(c) Issuer company gives details of allotment to Depository.
Answer:
(a) Investor (BO) submits an application for Securities to the issuer company
(b) Issuer company gives details of allotment to Depository
(c) Issuer company gives details of allotment to Depository

2. Explain the following terms/concepts.

Question 1.
Depository System
Answer:

• In the Depository system, securities are held in electronic form.
• The transfer and settlement of securities are done electronically.
• The Depository System maintains accounts of the shareholder, enables transfer, collects dividends, bonus shares, etc. on behalf of the shareholder.
• This system is also called a scriptless trading system.
• It keeps the securities safe. It offers scope for paperless trading by using state-of-art technology.

Question 2.
Dematerialization
Answer:

• Dematerialization is a process whereby a client can get physical certificates converted into electronic mode.
• For this client has to surrender the certificates along with the Demat Request Form (DRF) to the DP.

Question 3.
Rematerialization

• Rematerialization is the process whereby a client can get his electronic holdings of securities converted into physical certificates.
• For this client has to give a written request in the form of Remat Request Form (RRF) to the DP.

Question 4.
Fungibility
Answer:

• Fungibility means the state of being interchangeable. Securities issued by the same company of the same class have the same value no matter who owns them.
• The securities held in electronic form are fungible which means they don’t have distinctive numbers.

Question 5.
ISIN
Answer:

• ISIN is a standard numbering system that is accepted globally.
• ISIN consists of a 12 (twelve) digit alpha-numeric code which is divided into 3 (Three) parts.
• The company has to apply for ISIN for its securities with documents like a prospectus.

3. Study the following case/situation and express your opinion.

1. Mr. Z holds 100 shares of peculiar Co. Ltd. In physical mode and wishes to convert the same in electronic mode:

Question (a).
Mr. Z holds a savings bank account with CFDH Bank Ltd. Can he deposit his shares in this account for Demat?
Answer:
No. He can’t, as it is a savings bank account.

Question (b).
What type of account is needed for the same?
Answer:
For holding electronic securities, he needs to open a Demat A/c with the Depository Participant (DP).

Question (c).
Is it the RBI that will be the custodian of shares of Mr. Z after demating?
Answer:
No. RBI won’t be the custodian. After demating concerned ‘Depository’ (NSDL/CDSL) will be the custodian of the shares of Mr. Z.

2. Mr. R holds 100 shares of Peculiar Co. Ltd. In Demat mode.

Question (a).
He wants to transfer one share each to his wife, daughter, and son. Can he do so?
Answer:
Yes, Mr. R can do so, as under dematerialized securities market lot is of one share.

Question (b).
Does he need to submit DRF or DIS if he wants to transfer his shares?
Answer:
He needs to submit DIS (Delivery Instruction Slip) if he wants to transfer his shares.

Question (c).
Can he nominate his wife in his Demat account?
Answer:
Yes. Mr. R can nominate his wife for the Demat account.

3. Mrs. Z wishes to open a Demat account in her name.

Question (a).
Can she open the account going to the Mumbai office of NSDL?
Answer:
No, Mrs. 2 cannot go directly to the Mumbai office of NSDL.

Question (b).
Is she required to pay for the opening of the account and its maintenance?
Answer:
Yes, she is required to pay for the opening of the account and its maintenance.

Question (c).
Does she have to send the shares to the respective company for demating?
Answer:
Yes, she has to send her original share certificate through Depository Participant to the company.

4. Mr. L wants to demat his 25 shares of Peculiar Co. Ltd bearing certificate no 100 and distinctive no 76-100.

Question (a).
Which form is he required to fill as a written request to the DP?
Answer:
Mr. L is required to fill Demat Request Form (DRF) as a written request to DP.

Question (b).
Does he have to fill instrument of transfer if he wishes to transfer the same after demat?
Answer:
No, he needs to fill instrument of transfer after opening Demat A/c.

Question (c).
Does he have to quote certificate no. and distinctive no. if he wishes to transfer his shares after it is in Demat form?
Answer:
No, Mr. L need not quote certificate no. and distinctive no. if he wishes to transfer his shares after it is in Demat form.

5. Mr. S. holds 50 shares of Peculiar Co. Ltd in Demat form. The company has declared a dividend of Rs 5. Per-share and Bonus of 1 : 1 to its shareholders.

Question (a).
How will Mr. S get his dividend?
Answer:
Mr. S will get his dividend credited directly to his Demat A/c.

Question (b).
Will he get a Bonus share in Physical or Demat?
Answer:
He will get Bonus Share in his Demat A/c.

Question (c).
Who is entitled to dividend and Bonus: Mr. S or the depository? (NSDL in this case).
Answer:
Mr. S is entitled to dividends and Bonuses through the depository services.

4. Distinguish between the following.

Question 1.
Dematerialization and Rematerialization.
Answer:

Points	Dematerialization	Rematerialization
1. Meaning	Conversion of physical securities into electronic form is known as ‘Dematerialization’	Conversion of electronic securities into physical form is known as ‘Rematerialization’
2. Conversion	Securities in physical/paper form are converted into electronic form	The electronic form of securities are converted into physical form
3. Form Used	‘Demat Request Form (DRF) is submitted by the investor to the DP	‘Remat Request Form’ (RRF) is submitted by the investor to the DP
4. Process	It is an initial process	It is a reverse process
5. Function/Sequence	It is a primary and principal function of the depository	It is a secondary and supporting function of the depository
6. Distinctive numbers	Demat securities have no distinctive numbers	Remat securities will have certificates and distinctive numbers issued by the company
7. Securities Maintenance Authority	The depository is the custodian of securities and records	The issuing company keeps the record. The investor also maintains the record
8. Time Consumed	It is an easy and time-saving process	It is a complex and time-consuming process

5. Answer in brief.

Question 1.
Explain the disadvantages of the physical mode of holding securities.
Answer:
Securities mean shares, debentures, bonds, units of mutual funds, securities are held in physical form or paper form. Following are the problems/disadvantages of holding the securities in electronic form:
(i) Risk factor:
Paper certificates can be lost, damaged, torn, stolen, or misplaced during transit, etc.

(ii) Efforts in Duplicating:
If the original certificate is lost it becomes difficult to obtain duplicate certificates. It consumes time, effort, and money.

(iii) Delay in the allotment:
Allotment of new securities in physical form requires a longer time.

(iv) Delay in Transfer and Transmission:
Handling and recording physical certificates take a lot of time in the transfer and transmission of securities.

(v) Risk of Bad Delivery:
Buying and selling securities can create problems if the certificates are torn, forged, etc.

Question 2.
Explain any four advantages of the Depository system to investors.
Answer:
Investor refers to the Beneficial Owner, the one who invests in the company’s securities.
Advantages of Depository System to the Investor are as follows:
(i) No Risk:
Risks related to physical certificates like delays, loss of certificates, theft, mutilation, bad deliveries, etc. are totally eliminated.

(ii) Safety of Investment:
The safest and secure way of holding securities is in the form of DEMAT. It is controlled under Depositories Act and monitored by SEBI. For e.g. If we don’t want to deal in securities, for the time being, we can freeze the account instructing DP to avoid unexpected debit or credit.

(iii) Easy Transfer of Shares:

• There is no need of filling transfer form and submitting documents.
• Stamp duty is not applicable in this process.
• Cash realization and security transfer take place very fast.

(iv) Updated information:
The investor receives updated information about his transactions and holdings from DP and also sometimes from Depository.

(v) Loan against securities:
An investor can raise a loan from the banks against the security of Dematerialized securities.

(vi) No ‘Lots’:
The lot system has been abolished. The market lot is one share for dematerialized securities.

(vii) Nomination Facility:
Nomination Facility is allowed under the Depository system. In the event of the death of the investor, the process becomes simple.

(viii) Automatic Credit:
The investor’s account is automatically credited or debited by the company. This is called ‘Corporate Action.’
For e.g. Payment of dividend, Bonus Issue, Right Issue, Redemption, etc.

Question 3.
Explain any four advantages of the Depository system to the company.
Answer:
Benefits/Advantages of Depository System:
(A) Investors:
(i) Safety:
A safe and secure way of holding securities is in electronic form/mode. The depository system is monitored by SEBI. The Investor can keep his account in a ‘Freeze/Lock’ mode to avoid/prevent unexpected debit or credit or both by giving instructions to the DP.

(ii) Easy Transfer of Shares:
These securities can be easily transferred in electronic mode. Filling out the transfer form and uploading the documents can be easily done online. It is a time and efforts saving process. No stamp duty is levied on the depository system.

(iii) Update and Intimation:
The investor can check his status of holding securities at any time. Depository Participant provides investors with his statement of accounts periodically.

(iv) Automatic Credit:
Under, the depository system the investor’s account is automatically credited/debited. This credit or debit of accounts is usually in case of Payment of Dividend, Issue of Bonus Shares, Offering of Rights Shares, Early Redemption of Debentures, Mergers, and Acquisitions, etc.

(B) Companies:
(i) Up-to-date Information:
The depository system enables the company to maintain the information of the investors holding. It also helps the company to keep updated information about its shareholding pattern. The company is able to know the particulars of beneficial owners and their holdings periodically.

(ii) Reduction in costs and efforts:
Due to the depository system, maintaining the documents physically, the printing of certificates has saved a lot of time and cost.

(iii) Better Relationships:
The transfer process under the depository system is prompt and free from defects. So, complaints against the company by an investor are avoided in this regard. This helps the company build a good corporate image.

(iv) International Investment:
Paperless trading is a boon for the company management as it provides better and quicker services to the investors staying within the country and abroad. This attracts investment from abroad.

Question 4.
Explain Depository as a constituent of Depository System.
Answer:

• The depository is a company registered under the Companies Act, to deal in securities.
• It holds the securities in electronic form.
• It is responsible for safeguarding the investor’s securities and preventing any manipulation of records and transactions.
• There is no direct access of investors with the Depository.
• It works as a link between the company and investors.
• Statement of accounts is provided to the investor periodically.

Question 5.
Explain DP as the constituent of the Depository System.
Answer:

• Depository Participant acts as a link between the Depository and the Investor. In other words, it is an agent of the depository.
• DP is registered under the SEBI Act. It enjoys rights and obligations as specified under SEBI Regulations of 1996.
• It is an intermediary appointed by Depository.
• DP directly deals with customers and sends a statement of accounts periodically.
• The DP has a unique number for identification.
• Banks, Financial Institutions, Stock Brokers, etc. can function as Depository Participants.
• Thus, it is rightly justified that DP is an important constituent of the Depository system.

6. Justify the following statements.

Question 1.
Electronic holding of securities is safer than physical holding.
Answer:

• Electronic holding of securities means holding the securities in dematerialized form.
• Conversion of physical certificates into electronic form is known as ‘Dematerialization’.
• Holding securities in electronic form eliminates a huge volume of paperwork.
• The use of technology facilitates paperless trading which eliminates storage and handling of certificates. It also helps in reducing costs and efforts.
• There is no risk of getting lost, damaged, torn, stolen, misplaced during transit, etc.
• Delay in transfer and allotment of securities is also avoided.
• Thus, it is rightly justified that, electronic holding of securities is safer than physical holding.

Question 2.
Depository provides easy and quicker transfer of shares.
Answer:

• Under the Depository system, securities are held in electronic form.
• Not only the transfer and settlement of securities are done electronically but it also maintains the accounts of the shareholder, collects dividends, bonus shares, etc. on behalf of the shareholder.
• Depository Participant acts as a link between the Depository and the Investor.
• No stamp duty is levied on the depository system.
• Processing time in the transfer of securities is reduced and neither the securities nor the cash is held up for an unnecessarily long time.
• Hence it is also called a “Scripless trading system”. Thus, it is rightly justified that the Depository provides easy and quicker transfer of shares.

Question 3.
Depository System results in reduced time, cost and efforts.
Answer:

• The depository System has a very important role to play in the successful functioning of the Capital market.
• Under Depository System, securities are held in electronic form.
• The transfer and settlement of securities are done electronically.
• The Depository system maintains accounts of the shareholder, enables transfer, collects dividends, bonus shares, etc. on behalf of the shareholder.
• It eliminates a huge volume of paperwork, storage, and handling of physical certificates.
• Thus, it is rightly justified that, Depository system results in reduced time, cost and efforts.

Question 4.
The depository system is very similar to the Banking system.
Answer:

• The depository system is similar to the Banking system in many aspects.
• Depository keeps the securities safe, just like the bank keeps the money of the account holder safe.
• In banks, funds are held in accounts having unique numbers. Similarly, securities are held in accounts having unique IDs.
• There is no physical handling of money in the bank. Similarly, there is no physical handling of securities by the depository.
• Bank facilitates the transfer of funds between accounts. Depository facilitates the transfer of securities between accounts.
• Thus, it is rightly justified that the Depository system is very similar to the Banking system.

Question 5.
DP is an important constituent of the Depository system.
Answer:

• Depository Participant acts as a link between the Depository and the Investor. In other words, it is an agent of the depository.
• DP is registered under the SEBI Act. It enjoys rights and obligations as specified under SEBI Regulations of 1996.
• It is an intermediary appointed by Depository.
• DP directly deals with customers and sends a statement of accounts periodically.
• The DP has a unique number for identification.
• Banks, Financial Institutions, Stock Brokers, etc. can function as Depository Participants.
• Thus, it is rightly justified that DP is an important constituent of the Depository system.

Question 6.
Depository system allows both: Physical to electronic and electronic to physical conversion.
Answer:

• Under the Depository system, physical certificates can be converted into electronic ones known as ‘Dematerialization’.
• Similarly, the conversion of electronic securities into physical certificates is known as ‘Rematerialization’.
• Due to Dematerialization transfer of securities takes place fast and transactions are also settled immediately. Whereas in Rematerialization, settlement of transactions in the physical system takes more time.
• In Rematerialization, storing and handling physical certificates is more time-consuming. Whereas in dematerialization, there is no handling of certificates.
• There are chances of certificates getting lost, damaged, torn, stolen, misplaced during transit, etc.
• In this technological world, Demat securities are more preferred over Rematerialized securities.
• Thus, it is rightly justified that the Depository system allows both: Physical to electronic and electronic to physical conversion.

Question 7.
ISIN is a necessary component of Demat.
Answer:

• International Securities Identification Number (ISIN) is a code that uniquely identifies a specific securities issue.
• ISINs are allotted by that country’s NNA (National Numbering Agency).
• ISIN is a standard numbering system that is accepted globally.
• The ISIN’s structure is currently defined by the International Organization of Standardization (ISO).
• ISIN consists of a 12 (twelve) digit alpha-numeric code which is divided into 3 (three) parts.
• The company has to apply for ISIN for its securities with documents like a prospectus.
• In India, issuing ISIN to securities is assigned by SEBI to NSDL (for Demat shares). SEBI works as NNA in India.
• Thus, from the above points, it is rightly justified that ISIN is a necessary component of Demat.

7. Answer the following.

Question 1.
What is Depository System? Explain its advantages?
Answer:
The depository system came into existence in the year 1996. It is a system where securities are held in electronic form. It also maintains accounts of the shareholder, enables transfer, collects dividends, bonus shares, etc. on behalf of the shareholder. In other words, it is also called a scriptless trading system.

Benefits/Advantages of Depository System:
(A) Investors:
(i) Safety:
A safe and secure way of holding securities is in electronic form/mode. The depository system is monitored by SEBI. The Investor can keep his account in a ‘Freeze/Lock’ mode to avoid/ prevent unexpected debit or credit or both by giving instructions to the DP.

(ii) Easy Transfer of Shares:
These securities can be easily transferred in electronic mode. Filling out transfer forms and uploading the documents can be easily done online. It is a time and efforts saving process. No stamp duty is levied on the depository system.

(iii) Update and Intimation:
The investor can check his status of holding securities at any time. Depository Participant provides investors with his statement of accounts periodically.

(iv) Automatic Credit:
Under, the depository system the investor’s account is automatically credited/debited. This credit or debit of accounts is usually in case of Payment of Dividend, Issue of Bonus Shares, Offering of Rights Shares, Early Redemption of Debentures, Mergers, and Acquisitions, etc.

(B) Companies:
(i) Up-to-date Information:
The depository system enables the company to maintain the information of the investors holding. It also helps the company to keep updated information about its shareholding pattern. The company is able to know the particulars of beneficial owners and their holdings periodically.

(ii) Reduction in costs and efforts:
Due to the depository system, maintaining the documents physically, the printing of certificates has saved a lot of time and cost.

(iii) Better Relationships:
The transfer process under the depository system is prompt and free from defects. So, complaints against the company by an investor is avoided in this regard. This helps the company build a good corporate image.

(iv) International Investment:
Paperless trading is a boon for the company management as it provides better and quicker services to the investors staying within the country and abroad. This attracts investment from abroad.

Question 2.
Explain the constituents of the depository system.
Answer:

(i) Depository:

• Depository is an organization or a system where securities/shares are held in electric form.
• Depository transfers securities/shares between accounts on the instruction of the account holders.
• Depository contacts the customer through a depository participant.
• Transfer of shares is made through mere computerized book-entry in the depository.
• This becomes possible because shares are dematerialized.
• Only those securities which are held in the form of the share certificate are one’s names can be dematerialized.
• At present, there are two depositories. They are:
  • National Securities Depository Limited (NSDL)
  • Central Depository Services Limited (CDSL).

(ii) Depository Participant:

• The depository participant is the representative of the depository.
• Depository participant acts as an intermediary between investors and depositories.
• The depository participants have an identity number for identification.
• It has to maintain accounts of securities of each investor.
• Depository participant gives intimation about holdings from time to time by sending a statement of holding.
• According to SEBI guidelines financial institutions, banks, stockbrokers can act as depository participants.

(iii) Beneficial Owner:

• An investor is known as ‘Beneficial Owner’ on whose name Demat account is opened.
• He enjoys the rights and benefits of members such as getting dividends, getting bonus shares, to vote at meetings.
• He is allotted an account number where securities are held.

(iv) Issuer Company:

• It is a company that makes an issue of securities.
• It must get registered with the depository.

Balbharti Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 8 Correspondence with Depositors Textbook Exercise Questions and Answers.

Maharashtra State Board Class 12 Secretarial Practice Solutions Chapter 8 Correspondence with Depositors

1A. Select the correct answer from the options given below and rewrite the statements.

Question 1.
Depositors are ____________ of a company.
(a) members
(b) creditors
(c) debtors
Answer:
(b) creditors

Question 2.
Depositors provide ____________ capital to the company.
(a) short term
(b) long term
(c) medium-term
Answer:
(a) short term

Question 3.
A company cannot accept deposit for more than ____________ months.
(a) 24
(b) 36
(c) 45
Answer:
(b) 36

Question 4.
A company cannot accept deposit for less than ____________ months.
(a) 6
(b) 3
(c) 5
Answer:
(a) 6

Question 5.
Deposits are ____________ loans of the company.
(a) fixed
(b) short term
(c) long term
Answer:
(b) short term

Question 6.
Public deposits are accepted to meet the requirement of ____________ capital.
(a) fixed
(b) working
(c) owned
Answer:
(b) working

Question 7.
____________ has the power to invite deposits from public.
(a) Shareholders
(b) Auditors
(c) Board of Directors
Answer:
(c) Board of Directors

Question 8.
Rate of interest on deposits is ____________
(a) fixed
(b) fluctuating
(c) moderate
Answer:
(a) fixed

Question 9.
The return or income for the investment of money on deposits is called ____________
(a) dividend
(b) interest
(c) discount
Answer:
(b) interest

1B. Match the pairs.

Question 1.

Group ‘A’	Group ‘B’
1. Depositors	(a) Fixed
2. Rate of Interest on deposits	(b) Evidence of Ownership
3. Deposit receipt	(c) Debtors
	(d) Creditors
	(e) Evidence of deposit
	(f) Fluctuating

Answer:

Group ‘A’	Group ‘B’
1. Depositors	(d) Creditors
2. Rate of Interest on deposits	(a) Fixed
3. Deposit receipt	(e) Evidence of deposit

1C. Write a word or a term or a phrase that can substitute each of the following statements.

Question 1.
Return on investment on deposit.
Answer:
Interest

Question 2.
The instrument for payment of interest on the deposit.
Answer:
Interest Warrant

Question 3.
An acknowledgment of the fixed deposit accepted by a company.
Answer:
Fixed Deposit Receipt

Question 4.
Return of deposits on the maturity date.
Answer:
Repayment of deposit

Question 5.
The maximum period of deposits.
Answer:
36 months

1D. State whether the following statements are true or false.

Question 1.
Fixed deposit is a short-term source of finance for the company.
Answer:
True

Question 2.
Fixed deposit holder is a creditor of the company.
Answer:
True

Question 3.
Deposits are invited by the company without issuing statutory advertisement.
Answer:
False

Question 4.
Fixed deposit holders are entitled to receive dividends.
Answer:
False

Question 5.
A private company cannot accept deposits from the general public.
Answer:
True

Question 6.
Depositors are given voting rights.
Answer:
False

1E. Find the odd one.

Question 1.
Dividend, Depositor, Deposit Receipt
Answer:
Dividend

Question 2.
Trust Deed, Depository, Deposit Receipt
Answer:
Depository

1F. Complete the Sentences.

Question 1.
Depositors are the ____________ of the company.
Answer:
Creditors

Question 2.
The ____________ must be cautious and careful while writing letters to the depositors.
Answer:
Secretary

Question 3.
Deposit is a ____________ term source of finance of the company.
Answer:
Short

Question 4.
A company can accept deposits for the minimum period of ____________ months.
Answer:
6 months

Question 5.
Depositors are entitled to receive ____________ at fixed rate.
Answer:
Interest

1G. Select the correct option from the bracket.

Question 1.

Group ‘A’	Group ‘B’
(1) Depositor	(a) …………………….
(2) Return on Deposits	(b) …………………….
(3) …………………….	(c) Maximum period of Deposits
(4) Minimum Period of Deposits	(d) ………………………

(Interest, Creditors of the company, 36 months, 6 months)
Answer:

Group ‘A’	Group ‘B’
(1) Depositor	(a) creditors of the company
(2) Return on Deposits	(b) interest
(3) 36 months	(c) Maximum period of Deposits
(4) Minimum Period of Deposits	(d) 6 months

1H. Answer in one sentence.

Question 1.
Who is the depositor?
Answer:
The person who keeps his/her money for a fixed period of time with the company is known as ‘Depositor’.

Question 2.
What is the return on deposit?
Answer:
Fixed-rate of interest is provided as the return on a deposit.

Question 3.
What is Interest Warrant?
Answer:
An interest warrant is an instrument of payment of interest.

Question 4.
What is a renewal of deposit?
Answer:
A process of continuing the deposit for an additional time period after maturity of investment (deposit) is called “Renewal of Deposit”.

Question 5.
Which document is enclosed along with the Renewal Letter?
Answer:
Renewal Deposit Receipt is enclosed along with the Renewal Letter.

Question 6.
When will the company return the deposits?
Answer:
The company will return the deposit amount at the time of maturity (after the expiry of the fixed period).

Question 7.
What is the minimum and maximum period of deposit?
Answer:
The deposit can be accepted for a minimum period of 6 months and a maximum period of 36 months.

1I. Correct the underlined words and rewrite the following sentence.

Question 1.
Depositors are owners of the company.
Answer:
Depositors are creditors of the company.

Question 2.
Deposits are the internal source of financing.
Answer:
Deposits are the external source of financing.

Question 3.
Deposit is a long-term source of capital.
Answer:
Deposit is a short-term source of capital.

Question 4.
Depositors are entitled to receive dividends.
Answer:
Depositors are entitled to receive interest.

1J. Arrange in proper order.

Question 1.
(a) Renewal of deposit
(b) Acceptance of deposit
(c) Deposit Receipt
Answer:
(a) Acceptance of deposit
(b) Deposit Receipt
(c) Renewal of deposit

Question 2.
(a) Payment of interest
(b) Deposit Receipt
(c) Acceptance of deposits
Answer:
(a) Acceptance of deposits
(b) Deposit Receipt
(c) Payment of interest

2. Explain the following terms/concepts.

Question 1.
Depositor
Answer:
The person who keeps deposits with the company for a fixed period of time is known as ‘Depositor’.

Question 2.
Deposit
Answer:
Deposit is a short-term source of finance of the company and it is used in order to satisfy the short-term working capital needs of the company.

Question 3.
Interest on deposit
Answer:
Interest on deposit refers to the return on the investment of money in deposits.

Question 4.
Deposit Receipt
Answer:
A deposit Receipt is an acknowledgment of deposit money accepted by the company.

Question 5.
Renewal of deposit
Answer:
Renewal of Deposit means accepting the same deposit for an additional period of time after its maturity.

Question 6.
Repayment of Deposit
Answer:
Refunding the amount of deposit on the maturity of tenure of deposits is known as ‘Repayment of Deposit’.

3. Answer in brief.

Question 1.
Which precautions are to be taken by the secretary while corresponding with depositors?
Answer:
Following precautions should be undertaken while drafting letters to the depositors:
(i) Courtesy:
While writing letters to the depositors, polite replies are essential. Rude and harsh words should be strictly avoided.

(ii) Quick response:
Being the creditors of the company, due respect should be given to the depositors of the company. Immediate replies to be given to the queries and complaints of the depositors without any delay.

(iii) Accuracy:
Letters written to the depositors should be accurate and precise. True and correct information should be provided to them.

(iv) Conciseness:
The letters to the depositors must be concise i.e. short, brief, and to the point. Unnecessary and irrelevant information should be avoided.

(v) Your Attitude:
The letters to the depositors must be written after taking into consideration the requirements of the depositors.

(vi) Secrecy:
As a confidential officer, the secretary has to maintain secrecy regarding correspondence with the depositors. Any secret information regarding the company must not be disclosed through correspondence.

(vii) Image and Goodwill:
Correspondence plays a very important role in maintaining the goodwill of the company. While corresponding, the secretary should take all necessary steps so that the goodwill of the company will not get affected.

(viii) Legal Provision:
The secretary should see to it that all provisions relating to invitation, acceptance, renewal, and repayment of deposits are duly followed by the company while corresponding with depositors.

Question 2.
What are the circumstances under which the Secretary makes correspondence with depositors?
Answer:

• A company secretary has to conduct correspondence with depositors on different occasions.
• This correspondence is limited as they are creditors and not the owners of the company.
• Deposits are accepted for a short period.
• The relationship of depositors also comes to an end immediately after deposits are repaid.

Following are the circumstances under which correspondence is done with the depositors:

• Letter to express thanks to the depositor for showing faith in the company and depositing the amount
• Intimation about payment of interest
  • Interest warrant
  • Electronic payment of Interest
• Letter informing about the renewal of deposit
• Informing the depositor about the maturity of deposits.

4. Justify the following statements.

Question 1.
The Company Secretary should take certain precautions while corresponding with depositors.
Answer:

• The deposit represents the short-term borrowed capital of the company.
• Depositors are the creditors of the company.
• The company secretary should correspond properly with the depositors in order to ensure the continuous flow of investments.
• The reply to queries and complaints of depositors should be prompt and courteous.
• The letter should be written from the depositors’ point of view and accurate information must be supplied to them.
• All the legal provisions must be followed and the goodwill of the company has to be maintained.
• Thus, it is rightly justified that the company secretary should take every precaution while corresponding with depositors.

Question 2.
There are certain circumstances when a secretary has to correspond with depositors.
Answer:

• Depositors are the creditors of the company and not the owners.
• Frequent correspondence with depositors is not required as they do not participate in the management of the company.
• The company secretary has to conduct correspondence with depositors regarding the acceptance of deposits, payment of interest on deposits, renewal of deposits, repayment of deposits, and so on.
• Secretary conducts such correspondence on behalf of the company and also as per the instructions of the Board of Directors.
• The secretary should be very cautious and careful while corresponding with depositors of the company.
• Thus, it is rightly justified that the secretary has to correspond with depositors on certain circumstances.

5. Attempt the following.

Question 1.
Draft a letter of thanks to depositors of a company.
Answer:

RADHIKA INDUSTRIES LIMITED
501A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/05/2018-19

Website: www.radhikalimited.com
Email: radhika4@gmail.com
Date: 15th May 2019

Mr. Deepak Ved
C/25, LIC Colony
L.J. Road, Mahim,
Mumbai – 400 096

Sub: Thanking Depositor For Fixed Deposit.

Dear Sir,
As per your application received for a fixed deposit of ₹ 1,00,000/- for a period of 1 year, dated 10th May 2019, we are thankful to you for showing faith and confidence in the company.

The details of deposits accepted are given in the following schedule:

1	2	3	4	5
Fixed Deposit Receipt No.	Amount of Deposit	Period of Deposit (years)	Rate of Interest (%)	Bank Details
				Name of the Bank	Bank Account No.
412	₹ 1,00,000	1 year	10%	Bank of Baroda	613234

The Board of Directors of our company expresses their gratitude for depositing money in our company. The fixed deposit receipt is enclosed along with this letter.

We assure you the best of our services all the time.
Thanking you,

Yours faithfully
For Radhika Industries Limited,

Sign
Mr. Harshad Sagwekar

Encl: Fixed Deposit Receipt No. 412

Question 2.
Draft a letter to a depositor informing him about payment of interest through interest warrant.
Answer:

RADHIKA INDUSTRIES LIMITED
501A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH 2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/25/2019-20

Email: radhika4@gmail.com
Website: www.radhikalimited.com
Date: 18th April 2019

Mrs Ruchika Korgaonkar
A/23, BPT Colony,
N.K.Road, Mahim,
Mumbai:-400 096.

Sub: Payment of Interest on Fixed Deposits.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 16th April 2019, this is to inform you that the interest @ 10% on your Fixed Deposit is due for payment.

Your company has complied with all the provisions relating to the payment of interest on deposits and the interest warrant drawn on ICICI Bank, Prabhadevi branch is enclosed herewith.

The details of your Fixed Deposit and interest payable on the deposit are given in the following schedule:

1	2	3	4	5	6	7
Interest Warrant No.	Fixed Deposit Receipt No.	Deposit amount	Rate of Interest (%)	Gross amount of interest	TDS @(10%)	The net amount of Interest Payable (₹)
3325	1242	₹ 1,00,000	10%	₹ 10,000	₹ 1,000	₹ 9,000

TDS certificate is enclosed for income tax purposes along with the interest warrant.
Thanking you,

Yours faithfully,
For Radhika Industries Limited

Sign
Mr. Fazal Shahzman

Encl:

1. Interest Warrant No. 3325
2. TDS certificate

Question 3.
Write a letter to the depositor for the renewal of his deposit.
OR
Draft a letter to the depositor for renewal of his deposit.
Answer:

SUNRISE INDUSTRIES LIMITED
50/A, Swami Narayan Road, Tunga Village, Mumbai: 400 072
CIN: L42105 MH2005 PLC 402512

Tel. No.: 022-23731242
Fax No.: 022-23738656
Ref. No.: S/DEP/51/2019-20

Website: www.sunriselimited.com
Email: sunrise5@gmail.com
Date: 17th Feb 2019

Mr. Rajesh Joshi
20, Hilton Complex,
Laxmi Road,
Solapur – 413 018

Sub: Renewal on Fixed Deposits.

Dear Sir,
We, hereby, acknowledge receipt of your application for the renewal of a deposit of ₹ 50,000/- for a further period
of one year. We have also received duly discharged deposit receipt No. 1242 and the same has been placed before the Board for consideration and approval.

As per the resolution passed at the Board meeting held on 15th Feb 2019, the Board has decided to renew the deposits for a further period of 1 year on the same terms and conditions.

A deposit receipt No 4424 is enclosed along with this letter.
Thanking you,

Yours faithfully,
For Sunrise Industries Ltd,

Sign
Miss Shalakha Suvarna
Company Secretary

Encl: Fixed Deposit receipt No 4424

Question 4.
Draft a letter to the depositor regarding redemption or repayment of his deposit.
Answer:

SWARG MARBLE LIMITED
40/B, C – Ramchandra Road, Khar (East), Mumbai: 400 053
CIN: L24308 MH2006 PLC 211388

Tel. No.: 022-4133242
Fax No.: 022-4215212
Ref. No.: S/DEP/15/19-20

Email: swarglimitedl2@gmail.com
Website: www.swarglimited.com
Date: 21st April 2019

Mr. Santosh Vichare
A/21, Swastik Colony,
Bhadkamkar Marg,
Fort, Mumbai:-400 020

Sub: Repayment of Fixed Deposits.

Dear Sir,
This is to inform you that your Fixed Deposit Receipt No. 3225 dated 1st May 2018 for ₹ 1,00,000/- will be due for repayment on 30th April 2019.

We have received original Deposit Receipt No. 3225 duly discharged along with instruction for repayment. The Board of Directors in the meeting held on 20th April 2019 has passed a resolution for the redemption of the deposits.

The details of repayment of deposit are as under:

1	2	3	4	5	6	7	8
Tenure of Deposit	Fixed Deposit Receipt No.	Deposit amount (₹)	Rate of Interest (10%)	Maturity amount (₹)	TDS (10%)	Net amount	Due Date of Deposit
1 year	3225	₹ 1,00,000	₹ 10,000	₹ 1,10,000	₹ 1,000	₹ 1,09,000	30th April 2019

Please find enclosed herewith a crossed cheque of ₹ 1,09,000, bearing No. 126224 dated 30th April 2019 drawn on Bank of India, Tardeo, Mumbai:- 400 034.
Thanking you,

Yours faithfully,
For Sward Industries Ltd,

Sign
Mr. Sandesh Virkar
Company Secretary

Encl: Crossed Cheque No. 126224

Question 5.
Draft a letter to a depositor informing him about payment of interest through electronic mode.
Answer:

RADHIKA INDUSTRIES LIMITED
501 A, Bandra-Kurla Complex, Bandra (East), Mumbai: 400 051
CIN: L46001 MH2002 PLC 503433

Tel. No.: 022-24761524
Fax No.: 022-24881242
Ref. No.: D/DEP/25/2019-20

Email: radhika4@gmail.com
Website: www.radhikalimited.com
Date: 18th April 2019

Mrs Anushka Khanvilkar
A/21, Mahindra Tower,
Tardeo Road, Mumbai Central,
Mumbai – 400 034

Sub: Payment of Interest on Fixed Deposits through ECS or NEFT.

Dear Madam,
As per the board resolution passed in the Board Meeting held on 16th April 2019, this is to inform you that the interest @ 10% on your Fixed Deposit is due for payment.

Your company has complied with all the provisions relating to the payment of interest on the deposits.

The details of your Fixed Deposit and interest payable on the deposit are given in the following schedule:

1	2	3	4	5	6
Fixed Deposit Receipt No.	Deposit amount	Rate of Interest (%)	Gross amount of interest	TDS @ (10%)	The net amount of Interest Payable (₹)
1242	₹ 1,00,000	10%	₹ 10,000/-	₹ 1,000	₹ 9,000

Interest will be payable by electronic transfer (ECS/NEFT), i.e. by crediting said interest to your bank account as per details provided by you to the company.
Thanking you,

Yours faithfully,
For Radhika Industries Limited,

Sign
Mr. Deepak Ved