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Commerce · Q475

Banking and Financial Institutions

Graduate and Post Graduate · Commerce · question 475

Q475

Which of the following statement/s is/are correct of floating Rate Notes? 1. These are debt instruments on which variable interest rate is payable. 2. The rate of interest is linked to a benchmark rate of interest and changes with the change in such bench mark rate of interest.

A.
1 is correct
B.
2 is correct
C.
1 and 2 is correct
Answer
D.
Neither 1 nor 2 is correct

Answer: Option C

Solution

Answer: Option C
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