Debt instruments play a crucial role in the global financial system by providing various entities with access to capital markets to finance their operations and investments. Discuss.
Kartavya Desk Staff
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment
Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment
5. Debt instruments play a crucial role in the global financial system by providing various entities with access to capital markets to finance their operations and investments. Discuss. (150 words)
Difficulty level: Easy
Reference: Insights on India
Why the question: The question is part of the static syllabus of General studies paper – 3. Key Demand of the question: To write about various types of debt instruments available in the Indian market. Directive word: Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments. Structure of the answer: Introduction: Begin by defining a debt instrument. Body: Write about the various type of debt instruments – government securities, corporate bonds, debentures, commercial papers, certificates of deposit, and money market instruments. Explain them in brief with suitable examples and the role they play in the economy. Conclusion: Conclude by summarising their importance.
Why the question:
The question is part of the static syllabus of General studies paper – 3.
Key Demand of the question:
To write about various types of debt instruments available in the Indian market.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by defining a debt instrument.
Write about the various type of debt instruments – government securities, corporate bonds, debentures, commercial papers, certificates of deposit, and money market instruments. Explain them in brief with suitable examples and the role they play in the economy.
Conclusion:
Conclude by summarising their importance.