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      Question

      A 'Hybrid' instrument is one

      that:┬а
      A Uses two different currencies. Correct Answer Incorrect Answer
      B Has features of both equity and debt. Correct Answer Incorrect Answer
      C Is sold only to NRIs. Correct Answer Incorrect Answer
      D Is exempt from all taxes. Correct Answer Incorrect Answer
      E Can be used as both cash and collateral. Correct Answer Incorrect Answer

      Solution

      Examples include convertible debentures or perpetual preference shares.

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