Question
EconomyFinancial Markets and InvestmentBonds and Debt InstrumentsMedium (editorial estimate)
Question details
- Type:
- Statement based
- Skill:
- Fact recall
- Tags:
- inflation-indexed bonds · Bonds and Debt Instruments
- Related topics:
- Inflation, Price Indices and Price Stability
Classification and difficulty are editorial labels. Explanations are awaiting review.
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With reference to the Indian economy, what are the advantages of "Inflation-Indexed Bonds (IIBs)"? 1. 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. Which of the statements given above are correct?
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Question 5 · Bonds and Debt Instruments · Economy · UPSC Prelims 2022 (GS)