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Which of the following statements about the corporate debt market is TRUE?

medium Q5 of 15
Financial Awareness - Risk, Stability & Emerging Finance
Which of the following statements about the corporate debt market is TRUE?
AOnly banks can issue corporate bonds in India
BCorporate bonds are tradable in the secondary market after issuance
CCorporate debt instruments are always secured by collateral
DThe Reserve Bank of India directly regulates corporate bond issuance
Step-by-Step Solution
  1. Step 1: Understand corporate bond issuance and trading

    Corporate bonds are issued by companies (not only banks) and are tradable in the secondary market.
  2. Step 2: Analyze other options

    Corporate debt can be secured or unsecured; RBI regulates banking and monetary policy, SEBI regulates corporate bonds.
  3. Final Answer:

    Corporate bonds are tradable in the secondary market after issuance → Option B
  4. Quick Check:

    Corporate bonds tradable in secondary market = true ✅
Quick Trick: Secondary market provides liquidity for corporate bonds
Common Mistakes:
  • Assuming RBI regulates corporate bonds or all corporate debt is secured
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