What are the two main types of stocks in the Indian stock market?
Equity and Debt
Public and Private
Common and Preferred
Government and Corporate
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What is the relationship between bond yields and bond prices?
Directly proportional
Inversely proportional
No relationship
Depends on the type of bond
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What does a high bond yield indicate?
High risk of default
Low return on investment
High return on investment
Low demand for the bond
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How do bond yields affect the cost of capital for companies?
Bond yields have no impact on the cost of capital
Higher bond yields lower the cost of capital
Higher bond yields increase the cost of capital
The relationship is unpredictable
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What happens to foreign investment in India when Indian bond yields are higher than global yields?
Foreign investors are discouraged from investing in India
Foreign investors are more likely to invest in Indian debt
Foreign investors are more likely to invest in Indian equities
There is no impact on foreign investment
Qn. 5 / 5
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