Question

What is a major risk associated with debt funds?

a.

Currency risk

b.

Inflation risk

c.

Interest rate risk

d.

Liquidity risk

Answer: (c).Interest rate risk Explanation:Interest rate risk is a major risk in debt funds, especially when interest rates change.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is a major risk associated with debt funds?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Why might the price of a bond in a debt fund fall when interest rates move up?

Q. What can cause interest rates to change in the market?

Q. According to mutual fund managers, which type of funds have outperformed equity markets recently?

Q. In which types of instruments do short-term debt fund schemes invest?

Q. What is the expected impact of liquidity conditions on interest rates?

Q. What external factor is a potential influence on interest rates in the expert opinion?

Q. What is one way through which Indian companies can raise equity capital in the international capital market?

Q. What regulatory framework governs the issues of ADR, GDR, FCCB, and FCEB by Indian companies?

Q. Which of the following is NOT a way through which the Indian Capital market has globalized?

Q. What is the purpose of the Depository Receipt mechanism?

Q. Which regulatory body is responsible for regulations and circulars governing the issues of ADR, GDR, FCCB, and FCEB?

Q. What is the primary purpose of issuing depository receipts (DRs) by a company?

Q. Why are investors interested in American Depositary Receipts (ADRs)?

Q. What is emphasized by the issuance of depository receipts (DRs) by a company?

Q. What is NOT a reason for investors' interest in ADRs?

Q. What regulatory approval is required for the issuance of Global Depositary Receipts (GDRs) or Foreign Currency Convertible Bonds (FCCBs)?

Q. Under which scheme do Indian companies raise foreign capital through ADRs/GDRs?

Q. When is an unlisted company required to obtain listing in the domestic market when issuing ADRs/GDRs?

Q. What restriction is imposed on the deployment or investment of funds raised through ADRs/GDRs?

Q. What is the basis for determining the ratio for issuing ADRs/GDRs by an Indian company?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!