UPSC Economics Business and Foreign Trade / व्यापार और विदेश व्यापार Question Bank Money Supply and Indian Financial System

  • question_answer
           Debentures and Equity differ in?

    A) Debentures are bonds confirming that money has been borrowed; equity is a shareholder's voting rights in proportion to his shareholding

    B) An equity shareholder cannot withdraw his investment but debenture holder can withdraw his money.

    C) Equity shares have greater risk compared to debentures which have fixed interest on the amount paid.

    D) Both have the right to vote irrespective of the size of their holdings. Debentures are of lower value than equity

    Correct Answer: A


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