UPSC Civil Services Prelims 2022
Question 13 of 57Indian Economy
With reference to the Indian economy, what are the advantages of “Inflation-Indexed Bonds (IIBs)”? 1. Government can reduce the coupon rates on its borrowing by way of IIBs. 2. IIBs provide protection to the investors from uncertainty regarding inflation. 3. The interest received as well as capital gains on IIBs are not taxable. Which of the statements given above are correct?
A1 and 2 only
B2 and 3 only
C1 and 3 only
D1, 2 and 3
Correct Answer
The correct answer is hidden
Explanation
23 words hidden ... They also protect investors against unexpected inflation by linking returns or principal to a price index. Statement 3 ... 28 words hidden