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 sectors contributes the most to India’s GDP?

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Which of the following is an example of a non-renewable resource?

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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 main objective of disinvestment in public sector undertakings (PSUs)?

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Which of the following factors is NOT included in the calculation of Human Development Index (HDI)?

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What is the main purpose of monetary policy?

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What does the “Phillips Curve” show?

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What does “Laissez-faire” policy advocate?

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What is the meaning of “supply-side economics”?

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What is meant by “crowding out” in economics?

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