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Debt Market Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

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

a)

₹1,000

b)

₹5,000

c)

₹10,000

d)

₹1,00,000

2.

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

a)

Treasury Bills

b)

Commercial Paper

c)

Certificates of Deposit

d)

Debentures

3.

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

a)

₹1,000

b)

₹10,000

c)

₹1,00,000

d)

₹10,00,000

4.

Which instrument represents unsecured short-term borrowing by corporates?

a)

Treasury Bill

b)

Commercial Paper

c)

Certificate of Deposit

d)

Zero-Coupon Bond

5.

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

a)

NSE Debt Segment

b)

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

c)

BSE Wholesale Debt Market

d)

Both b and c

6.

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

a)

They can only be privately placed

b)

They can be issued in both private and public issues

c)

They are regulated only by RBI

d)

They are always convertible into equity

7.

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

a)

Pays interest every quarter

b)

Sold at face value

c)

Issued at discount and redeemed at par

d)

Issued at premium and redeemed at premium

8.

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

a)

Coupon rate and interest rate movements

b)

Credit rating only

c)

Original issue price

d)

RBI notifications only

9.

Which is NOT a characteristic of a callable bond?

a)

Issuer can redeem before maturity

b)

Higher interest rate compared to non-callable bonds

c)

Investor can demand early redemption

d)

Higher reinvestment risk for investors

10.

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

a)

Interest rates have increased

b)

Interest rates have decreased

c)

Interest rates are unchanged

d)

Cannot determine