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Inflation-Indexed Bonds (IIBs) are structurally linked or pegged to which of the following?

  1. A
    WPI
  2. B
    CPI
  3. C
    Both WPI and CPI
  4. D
    None of the above

Solution & Step-by-step Explanation

To protect retail investors from the direct erosion of savings by retail inflation, modern Inflation-Indexed Bonds (IIBs) issued by the RBI are structurally pegged to the Consumer Price Index (CPI).

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Inflation-Indexed Bonds (IIBs) are structurally linked or pegged to which of the following?
A
WPI
B
CPI
C
Both WPI and CPI
D
None of the above

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Inflation Indexed BondsPrice IndexesCapital Markets

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