Quiz on CCM_Unit I

What are Government Securities often referred to as?

• Corporate Bonds

• T-Bills

• G-Secs

• Cash Management Bills

Which institution conducts auctions for government securities in India?

• Securities and Exchange Board of India (SEBI)

• Reserve Bank of India (RBI)

• National Stock Exchange (NSE)

• Ministry of Finance

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

• State Development Loans

• Treasury Bonds

• Cash Management Bills

• Treasury Notes

Which of the following is a characteristic of Zero-Coupon Bonds?

• They pay periodic interest

• They are issued at a discount

• They have a fixed maturity of 10 years

• They are only available to banks

What is a primary advantage of investing in government securities?

• High market volatility

• Tax-free interest income

• Guaranteed returns

• Higher returns than equities

What is the main disadvantage of government securities?

• High liquidity

• Lower returns compared to riskier assets

• Guaranteed capital gains

• No interest rate risk

Which type of government security pays semi-annual interest at a fixed coupon rate?

• Zero-Coupon Bonds

• Cash Management Bills

• Treasury Bills

• Treasury Notes

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

• ₹50,000

• ₹10,000

• ₹5,000

• ₹1,00,000

Which of the following is NOT a type of government security?

• Sovereign Gold Bonds

• State Development Loans

• Corporate Bonds

• Treasury Bills

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

• To manage foreign investments

• To participate in primary auctions

• To facilitate retail participation

• To issue corporate bonds