Q- Consider the following statements-1- Bonds are papers bearing the promise of future streams of monetary returns over a certain period of time-2- They can be issued by both governments and firms-Which of the statements given above is-are correct-

The correct option is C Both 1 and 2Explanation: Statement 1 is correct: nbsp; nbsp;Bonds are papers bearing the promise of a future stream of monetary ...

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Standard XII

Business Studies

Certificate Deposit

Q. Consider t...

Question

Q. Consider the following statements:
Which of the statement(s) given above is/are correct?

1 only

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2 only

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Both 1 and 2

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Neither 1 nor 2

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Solution

The correct option is C
Both 1 and 2
Explanation:

Statement 1 is correct: Bonds are papers bearing the promise of a future stream of monetary returns over a certain period of time. It earns a fixed income to the investor.

Statement 2 is correct: These papers are issued by governments or firms for borrowing money from the public and they are tradable in the market.

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