Inflation · Economy · UPSC Civil Service

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?

Which one of the following is likely to be the most inflationary in its effects?

Indian Government Bond Yields are influenced by which of the following?

1. Actions of the United States Federal Reserve

2. Actions of the Reserve Bank of India

3. Inflation and short-term interest rates

Select the correct answer using the code given below.

With reference to the Indian economy, demand-pull inflation can be caused/increased by which of the following?

1. Expansionary policies

2. Fiscal stimulus.

3. Inflation-indexing wages

4. Higher purchasing power

5. Rising interest rates

Select the correct answer using the code given below.