Vidyalelo
Management · Q317

International Finance and Treasury

Graduate and Post Graduate · Management · question 317

Q317

Replacement of bearer bonds with registered bonds is because of lack of

A.
security of indentures
B.
security of unregistered bonds
C.
security of bearer bonds
Answer
D.
security of registered bonds

Answer: Option C

Solution

Answer: Option C
Solution:
Replacement of bearer bonds with registered bonds is because of lack of security of bearer bonds. Bearer bonds that are lost cannot be replaced as no records exist on the identity of the security owner.