Question
Consider the following statements regarding Bonds and
Debentures: 1. Bonds are debt financial instruments issued by large corporations, financial institutions and government agencies that are not backed up by any collaterals or physical assets. 2. Debentures are debt financial instruments issued by private companies, with the backing up of collaterals or physical assets. 3. Bonds are long term investments and their tenure is generally higher than debentures. Which of the statements given above is /are correct?Solution
● Statements 1 and 2 are incorrect: Bonds are debt financial instruments issued by large corporations, financial institutions and government agencies that are backed up by collaterals or physical assets. Debentures are debt financial instruments issued by private companies, but any collaterals or physical assets do not back them up. Bonds are debt financial instruments that both public and private sector companies use to raise funds for their operations. The holder of these bonds is the lender, while the issuer of these bonds is the borrower. This interest rate is generally lower than debentures because the physical assets of a company secure bonds whereas the debentures are unsecured instruments. ● Statement 3 is correct: Bonds are long term investments and their tenure is generally higher than debentures. Debentures are generally short to medium term investments and their tenure is usually lower than bonds.
If '+' means '÷', '−' means '×', '×' means '+', '÷' means '−', what will come in place of the question mark (?) in the following equation?
<...With reference to the Indian and British Parliamentary systems, which of the following statements is incorrect?
A registered trade union can change its name with the prior consent of:
A spherical mirror forms an erect and diminished image. Identify the correct statement(s) about the spherical mirror.
(A) The mirror is concave.<...
Bilateral netting sometimes seen in news, it refers to
Which of the following facts are mentioned in the decision of the Supreme Court regarding Bilkis Bano?
1. Bilkis Bano challenges premature re...
Due to ocean acidification, when the ocean becomes more acidic, what happens to the pH level of the ocean?
Dr. Aykroyd's formula is associated with determination of
The insulator of electricity is :
Consider the following statements:
1. Part 'B' of the Budget speech of the finance minister includes description of the initiatives on economi...