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

What is the significance of “Purchasing Power Parity” (PPP)?

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What is “CRR” in banking terminology?

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What is the objective of the Goods and Services Tax (GST)?

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Which of the following is NOT an example of a direct tax?

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What is “open market operations” (OMO)?

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What is the primary purpose of Special Economic Zones (SEZs)?

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Which term refers to an economy that has elements of both capitalism and socialism?

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