USA HISTORY

MAKING OF A NEW NATION 1776 1800

PRESIDENT JOHN ADAMS FROM ALIEN AND SEDITION ACTS TO XYZ AFFAIR

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A certificate given by the government for an amount of money borrowed plus interest
A
Stock
B
Bond
C
Speculator
D
Tariff
Explanation: 

Detailed explanation-1: -The interest payment (the coupon) is part of the return that bondholders earn for loaning their funds to the issuer. The interest rate that determines the payment is called the coupon rate.

Detailed explanation-2: -The government bond interest rate of 2.50% is paid periodically on SGBs over a fixed maturity period of 8 years, with no taxes levied on the interest earned.

Detailed explanation-3: -A bond is an interest bearing certificate issued by an organization in order to borrow money. A bond is a loan between the borrower or issuer, and the lender or investor.

Detailed explanation-4: -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.

There is 1 question to complete.