BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is a way that government can borrow money from the private sector in order to pay the costs of regulation?
A
By selling licenses.
B
By raising taxes.
C
By setting prices.
D
By issuing bonds.
Explanation: 

Detailed explanation-1: -Known as “Ways and Means Advance” (WMA) as per the RBI Act, the loan facility is provided to the government on a temporary basis by the central bank to meet its mismatches between expenditure and flows of receipts.

Detailed explanation-2: -There are five main types of bonds: Treasury, savings, agency, municipal, and corporate. Each type of bond has its own sellers, purposes, buyers, and levels of risk vs. return. If you want to take advantage of bonds, you can also buy securities that are based on bonds, such as bond mutual funds.

Detailed explanation-3: -The SGB offers a superior alternative to holding gold in physical form. The risks and costs of storage are eliminated. Investors are assured of the market value of gold at the time of maturity and periodical interest. SGB is free from issues like making charges and purity in the case of gold in jewellery form.

Detailed explanation-4: -All you need to do is have a demat account and a trading account with a brokerage house. Once you have them, you can buy and sell bonds as per your choice. Once you do so, an amount is credited into your account which you need to input to complete bank verification. Post it, you need to fill in the nominee information.

There is 1 question to complete.