What are the two main categories of financial instruments?

Market-linked and Fixed-income Government and Corporate Domestic and International Short-term and Long-term

What type of financial instrument are bonds considered to be?

Fixed-income Market-linked Derivative Hybrid

What is the key benefit of investing in 54EC bonds?

High interest rates Tax exemptions on capital gains from property sales Short-term liquidity Guaranteed returns

What is the maximum amount that can be invested in 54EC bonds to avail of tax exemptions?

Rs. 25 Lakh Rs. 50 Lakh Rs. 1 Crore There is no limit

What is the lock-in period for 54EC bonds?

3 years 5 years 7 years 10 years

Which of the following is NOT a type of bond available in the Indian market?

Government bonds Municipal bonds Corporate bonds Commodity bonds

Which type of bond is considered to have the lowest risk?

Government bonds Municipal bonds Public sector bonds Corporate bonds

What is the main reason for the relatively lower demand for capital gains bonds?

Complex investment process High risk Low interest rates Limited availability

In which market are bonds initially introduced?

Primary market Secondary market Derivatives market Commodities market

What is the main purpose of the secondary market for bonds?

Issuing new bonds Facilitating trading of existing bonds Setting interest rates Regulating bond prices