Difference between "matter" and "problem"

[Sophie]

In my exercise book, there is a multiple - choice question like that:
That so many students failed the test is no laughing .....
A. Thing
B. Matter
C. Affair
D. Problem
The correct answer is B.
I wonder why we don't choose D as well. Can you explain the difference between "matter" and "problem"?
Thank you in advance.
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On earth there is nothing great but man, in man there is nothing great but mind.

[Mister Micawber]

.
'No laughing matter' is idiomatic.
.
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Native English teacher at Mister Micawber's

[Jank]

I've got another sentence:

The ___ (matter/problem) is that there are not enough hospital beds to guarantee proper treatment.

The correct answer is "problem". Why?

[Vietanhpham_Winter]

As it must be so. Matter is something more general than problem which indicates some bad thing.
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Nothing's impossible! Never say never! They're what I've been following. Hope you to follow them too!

[Mister Micawber]

Because 'matter' in this sentence would merely mean 'topic'.
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Native English teacher at Mister Micawber's