Question
Which of the following best describes the interest on
government bonds?Solution
• The risk-free rate is the theoretical return on an investment that carries zero risk of default. • In practice, no investment is entirely risk-free, but government bonds (especially those of stable governments) are considered the closest proxy since they are backed by sovereign authority and the likelihood of default is negligible. • Hence, the interest on government bonds is generally treated as the risk-free rate in models like CAPM (Capital Asset Pricing Model).
In the Monetary Policy Review on February 8, 2017, RBI did not change which of the following key rates?
What does the “C” stand for in LCR?
What is the primary aim of currency devaluation?Â
The Marginal cost of production of a commodity is
Recently Mastercard has appointed who among the following as its Brand Ambassador/Ambassadors ?
Which of the following commission is related with the Rajiv Gandhi Killing?
Who is the author of the recently released “MODI@20: Dreams Meet Delivery” book?
The act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy back up to the long-term trend, fo...
The word ‘BUDGET’ was taken from the _________ word.
Who is considered the father of modern economics.
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