← All previous year questions
UPSC Civil ServicesPrelims2022General Studies Paper I
Question
QQ5. 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 ?
Options
- A 1 and 2 only
- B 2 and 3 only
- C 1 and 3 only
- D 1, 2 and 3
Show AnswerHide Answer
Correct Answer
A 1 and 2 only
Model Answer
Answer: option A, as per UPSC's final answer key (Series A).