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    Question

    Which of the following is a 'Tier 1' Perpetual Debt

    Instrument? 
    A Fixed Deposit Correct Answer Incorrect Answer
    B AT-1 Bonds (Additional Tier 1) Correct Answer Incorrect Answer
    C Debentures with 10-year maturity Correct Answer Incorrect Answer
    D Gold Bonds Correct Answer Incorrect Answer
    E Savings Bank Account Correct Answer Incorrect Answer

    Solution

    AT-1 bonds are perpetual (no maturity date) and are part of Tier 1 capital. They can be written off or converted to equity if the bank’s capital falls below a certain level.

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