n NISM Certifications
XVII NISM Series XVII
Medium

What impact will large-scale government borrowings to bridge the fiscal deficit have on existing debt investments?

Practice question from NISM Series XVII- Retirement Adviser Mock Test 8 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    No impact

  2. B

    Positive impact due to rising interest rates

  3. C

    Increased market participation benefits debt investments

  4. Negative impact due to rising interest rates causing bond prices to fall

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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