Question : Which of the following statements is not true?
Option 1: Coupon rate is a specified interest rate payable on debenture.
Option 2: Zero Coupon Bonds are issued with a specified interest rate.
Option 3: Deep Discount Bonds are issued at a price substantially below the maturity value.
Option 4: In India, debentures issued by Companies have necessarily to be secured.
Correct Answer: Deep Discount Bonds are issued at a price substantially below the maturity value.
Solution : Answer = Deep Discount Bonds are issued at a price substantially below the maturity value.
Deep Discount Bonds are issued at a significantly discounted price but not necessarily below the maturity value. The discount reflects the difference between the issue price and the face value of the bond. Zero Coupon Rate Debentures (Bonds) are those debentures that do not carry a specific rate of interest. Hence, the correct option is 3.
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Question : Which of the following statements regarding 1980 to 1990 is correct.
Option 1: China was having double digit growth of 10.3%.
Option 2: Pakistan growth rate was 5.8%
Option 3: India was at the bottom with just 2.7% growth rate.
Option 4: All of the above statements are correct.
Question : Choose which of the following statements is not correct.
Option 1: Debentures Redemption Investment is made by all companies redeeming the debentures.
Option 2: All India Financial Institutions (AIFIs), Banking Companies and Other Financial Institutions are not required to set aside amount to Debentures Redemption Reserve.
Option 3: Unlisted NBFCs and HFCs are not required to invest 15% of Outstanding Debentures in Specified Securities.
Option 4: Debentures Redemption Reserve can be used only for redemption of debentures.
Question : Choose which of the following statements is true.
Option 1: Debentures Redemption Reserve is set aside by all the companies except All India Financial Institutions regulated by RBI and Banking Companies.
Option 2: Amount is set aside to Debentures Redemption Reserve by Unlisted Companies which are not Non-Banking Finance Companies (NBFCs) or Housing Finance Companies (HFCs).
Option 3: Amount is set aside to Debentures Redemption Reserve by all Unlisted Companies.
Option 4: Debentures Redemption Investment is made by the companies required to set aside amount to Debentures Redemption Reserve.
Question : ___________ is the interest rate at which banks can borrow overnight funds from the Reserve Bank of India (RBI).
Option 1: Bank rate
Option 2: Repo rate
Option 3: Reverse repo rate
Option 4: Prime rate
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