Quiz on UNIT I part 2

What are Government Securities often referred to as?

• Cash Management Bills

• Corporate Bonds

• T-Bills

• G-Secs

Which institution conducts auctions for government securities in India?

• Reserve Bank of India (RBI)

• Securities and Exchange Board of India (SEBI)

• Ministry of Finance

• National Stock Exchange (NSE)

What type of government security is issued for short-term needs, typically less than 91 days?

• Treasury Bonds

• Cash Management Bills

• Treasury Notes

• State Development Loans

Which of the following is a disadvantage of investing in government securities?

• Tax benefits

• High liquidity

• Lower returns compared to riskier assets

• Guaranteed returns

What is the primary purpose of issuing government securities?

• To finance infrastructure projects

• To provide loans to individuals

• To raise funds for private companies

• To invest in foreign markets

Which type of government security does not pay periodic interest?

• Treasury Notes

• Zero-Coupon Bonds

• Treasury Bills

• Savings Bonds

What is the minimum bid amount for competitive bidding in government securities?

• ₹5,000

• ₹1,000

• ₹10,000

• ₹50,000

Which of the following is a feature of Capital Indexed Bonds?

• Issued by private companies

• Protection against inflation

• Short-term maturity

• Fixed interest payments

What is the role of Primary Dealers in the government securities market?

• To issue corporate bonds

• To participate in primary auctions

• To facilitate retail participation

• To manage government spending

Which of the following is NOT a type of government security mentioned in the text?

• Treasury Bills

• Corporate Bonds

• State Development Loans

• Treasury Notes