Prelims • Paper 1 (GS) • 2022 • Q.5
Economics (Public Finance)
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.
Syllabus Connection
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc. (Prelims)
NCERT Connection
Ch.10: Comparative Development Experiences of India and Its Neighbours
Economics • Class 11 • Class 11 Indian Economic Development
Ch.5: Government Budget and the Economy
Economics • Class 12 • Class 12 Macroeconomics