Quiz on Sovereign Gold Bond Scheme (SGB)

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Topic: Quiz on Sovereign Gold Bond Scheme (SGB)

Number of Questions: 12

Pre-Readings: Sovereign Gold Bond Scheme (SGB)

1. Sovereign Gold Bonds are issued by?
   A) Commercial Banks
   B) Stock Exchange
   C) Reserve Bank of India
   D) All of the above
   
   View answer

     Option C
   Explanation: Issued by Reserve Bank India on behalf of the Government of India. Sold by Banks, SHCIL, post offices and recognized stock exchanges.
2. What is the tenor of Sovereign Gold Bond (SGB) Scheme?
   A) 5 years
   B) 6 years
   C) 8 years
   D) 12 years
   
   View answer

     Option C
   Explanation: The tenor of the Bond will be for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates.
3. What is the minimum limit of Gold Bond to be purchased under SGB?
   A) 1 gram
   B) 2 gram
   C) 4 gram
   D) 5 gram
   
   View answer

   Option A
   Explanation: Minimum Limit: 1 gram of gold
4. What is the maximum limit of Gold Bond to be purchased under SGB for individuals?
   A) 1 kg
   B) 2 kg
   C) 4 kg
   D) 20 kg
   
   View answer

   Option C
   Explanation: 4 kg for individuals
5. What is the maximum limit of Gold Bond to be purchased under SGB for trusts?
   A) 1 kg
   B) 2 kg
   C) 4 kg
   D) 20 kg
   
   View answer

   Option D
   Explanation: 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts
6. Price of Sovereign Gold Bond is fixed on the bases of price of Gold published by which institution?
   A) Reserve Bank of India
   B) India Bullion and Jewellers Association
   C) Indian Bullion Market Association
   D) All India Gem And Jewellery Domestic Council
   
   View answer

   Option B
   Explanation: IBJA
7. Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of _____ purity.
   A) 1000
   B) 998
   C) 990
   D) 999
   
   View answer

   Option D
   Explanation: Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewellers Association Limited.
8. What is the discount in Rupee per gram of gold if payment for Sovereign Gold Bond is made through digital mode?
   A) Rs 100
   B) Rs 150
   C) Rs 50
   D) Rs 175
   
   View answer

   Option C
   Explanation: The issue price of the Gold Bonds will be ₹ 50 per gram less for those who subscribe online and pay through digital mode.
9. What is the interest rate on Sovereign Gold Bond (SGB) Scheme?
   A) 2.50%
   B) 2.75%
   C) 2.25%
   D) 3.00%
   
   View answer

   Option A
   Explanation: Interest rate: 2.50% p.a payable semiannually.
10. The interest in Sovereign Gold Bond (SGB) Scheme is paid ________ .
    A) monthly
    B) quarterly
    C) semi annually
    D) annually
    
    View answer

    Option C
11. The Gold Bonds will be issued as Government of India Stocks under which act?
    A) Public Debt Act, 1944
    B) Bond Ledger Act, 2008
    C) Relief Bond Act 1924
    D) GS Act, 2006
    
    View answer

    Option D
    Explanation: The Gold Bonds will be issued as Government of India Stocks under Government Securities Act, 2006.
12. When an investor buys a SGB he/she is issued a ______ for the same.
    A) Face Certificate
    B) Bond Certificate
    C) Holding Certificate
    D) ETF Certificate
    
    View answer

    Option C
    Explanation: When an investors buys a SGB he/she is issued a Holding Certificate for the same. The Bonds are eligible for conversion into demat form.

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