Question

What is a potential drawback of Company Fixed Deposits and NCDs?

a.

Low return

b.

Guaranteed returns

c.

Higher risk of default

d.

Short lock-in period

Answer: (c).Higher risk of default Explanation:Company Fixed Deposits and Non-Convertible Debentures (NCDs) may offer higher returns but carry a higher risk of default, making them suitable only for investors with the requisite risk appetite.

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Q. What is a potential drawback of Company Fixed Deposits and NCDs?

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