Topic Details (Notes format)

Corporate Bond Market Development

Subject: Economics

Book: Comprehensive Indian Economy - Additional Topics

A deep corporate bond market reduces reliance on bank loans, diversifies risk, and lowers financing costs for companies. Efforts include rationalizing stamp duties, electronic trading platforms, and credit enhancement schemes. Yet, challenges persist: limited investor base, rating concerns, and preference for public sector bonds. Exam focus often is on how the bond market can complement bank lending, fueling infrastructure and corporate expansions while enhancing financial stability through risk dispersion.

Practice Questions

Which of the following measures can reduce a trade deficit?

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Which of the following is a direct tax?

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Which of the following is NOT part of the World Bank Group?

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Which organization is responsible for estimating India’s Gross Domestic Product (GDP)?

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What is the term for the ability of an economy to produce more output from the same inputs?

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Which of the following is an example of a public sector undertaking (PSU) in India?

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What is the term for the price at which demand and supply in a market are equal?

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What is a “repo rate”?

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Which of the following is a feature of monopolistic competition?

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What is meant by “stagflation”?

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