Which One of the Following Is a Unique Characteristic of an Income

question 47

Multiple Choice

Which one of the following is a unique characteristic of an income bond?

• A)Interest income is tax-free.
• B)Interest income is paid at the time of issuance.
• C)Coupon payments are dependent on the issuer's income.
• D)Coupon payments are paid on a regular monthly basis.
• E)Coupon payments can be converted into equity shares.

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Definitions:

Price and Incomes

Policies or measures aimed at controlling the growth of prices and incomes to curb inflation without affecting employment.

Equilibrium Exchange Rate

The exchange rate at which the demand for a currency exactly matches its supply, leading to market balance.

Foreign Exchange Markets

A global decentralized market for trading currencies, facilitating international trade and investment by enabling currency conversion.

Gold Standard

A financial regime in which the value of a nation's currency or banknotes is directly tied to the value of gold.