With reference to Convertible Bonds, consider the following statements:
1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.
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Which of the following activities constitute a real sector in the economy?
1. Farmers harvesting their crops
2. Textile mills converting raw cotton into fabrics
3. A commercial bank lending money to a trading company
4. A corporate body issuing Rupee Denominated Bonds overseas.
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With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds(IIBs)”?
1. The government can reduce the coupon rates on its borrowing by way of IIBs.
2. IIBs provide protection to the investors from uncertainty regarding inflation.
3. The interest received as well as capital gains on IIBs are not taxable.
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Consider the following statements:
1. Tight monetary policy of the US Federal Reserve could lead to capital flight.
2. Capital flight may increase the interest cost of firms with existing External Commercial Borrowings(ECBs).
3. Devaluation of domestic currency decreases the currency risk associated with ECBs.
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With reference to the Indian economy, consider the following statements:
1. An increase in Nominal Effective Exchange Rate(NEER) indicates the appreciation of rupee.
2. An increase in the Real Effective Exchange Rate(REER) indicates an improvement in trade competitiveness.
3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER AND REER.
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“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following?
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With reference to Indian economy, consider the following statements:
1. A share of the household financial savings goes towards government borrowings.
2. Dated securities issued at market related rates in auctions form a large component of internal debt.
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With reference to the expenditure made by an organization or a company, which of the following statements is/are correct?
1. Acquiring new technology is capital expenditures.
2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
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Which one of the following situations best reflects “Indirect Transfers” often talked about in media recently with reference to India?
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In India, which one of the following is responsible for maintaining price stability by controlling inflation?
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