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1 mark

Inflation Indexed Bonds is pegged to ______.

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

Solution & Step-by-step Explanation

When the Reserve Bank of India (RBI) initially launched capital-indexed and Inflation-Indexed Bonds (IIBs) in June 2013 to protect investor capital from inflation risk, the principal and interest payouts were explicitly pegged to the Wholesale Price Index (WPI).

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Inflation Indexed Bonds is pegged to ______.
A
WPI
B
CPI
C
Both WPI and CPI
D
None of the above

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Debt InstrumentsFinancial MarketsInflation Indices

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