Debt Market Quiz

What is the minimum face value of a Government Security (G-Sec) in India for retail investors under RBI Retail Direct?

• ₹1,000

• ₹5,000

• ₹10,000

• ₹1,00,000

Which instrument is commonly used by the Government of India for short-term borrowing?

• Treasury Bills

• Commercial Paper

• Certificates of Deposit

• Debentures

What is the typical face value of a corporate bond in India?

• ₹1,000

• ₹10,000

• ₹1,00,000

• ₹10,00,000

Which instrument represents unsecured short-term borrowing by corporates?

• Treasury Bill

• Commercial Paper

• Certificate of Deposit

• Zero-Coupon Bond

Which platform is used for secondary market trading of government securities in India?

• NSE Debt Segment

• RBI Negotiated Dealing System - Order Matching (NDS-OM)

• BSE Wholesale Debt Market

• Both b and c

Which of the following is TRUE about corporate bonds in India?

• They can only be privately placed

• They can be issued in both private and public issues

• They are regulated only by RBI

• They are always convertible into equity

Which of these is a feature of Zero-Coupon Bonds?

• Pays interest every quarter

• Sold at face value

• Issued at discount and redeemed at par

• Issued at premium and redeemed at premium

Which of the following determines the price of a bond in the secondary market?

• Coupon rate and interest rate movements

• Credit rating only

• Original issue price

• RBI notifications only

Which is NOT a characteristic of a callable bond?

• Issuer can redeem before maturity

• Higher interest rate compared to non-callable bonds

• Investor can demand early redemption

• Higher reinvestment risk for investors

A 5-year bond with a 7% coupon is selling at ₹1,050. What does this imply about the current market interest rates?

• Interest rates have increased

• Interest rates have decreased

• Interest rates are unchanged

• Cannot determine