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Business Studies

Call Money and T- Bill

Q. Consider t...

Question

Q. Consider the following regarding Masala Bonds:
Which of the statements given above is/are correct?

A

1 only

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B

2 only

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C

Both 1 and 2

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D

Neither 1 nor 2

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Solution

The correct option is B
2 only
Explanation:

Statement 1 is incorrect: These are debt instruments that can be used by Indian companies to raise funds in the overseas market.

Statement 2 is correct: The bonds are rupee-denominated rather than dollar-denominated.

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