Prelims Power Play 26 August 2022

1. Recently With reference to Convertible Bonds, consider the following statements:

1. As there is an option to exchange the bond for equity, Convertible Bonds pay a lower rate of interest.
2. The option to convert to equity affords the bondholder a degree of indexation to rising consumer prices.

Which of the statements given above is/are correct?

2. Consider the following

1. Both bonds and debentures are debt instruments.
2. Bonds are riskier than debenture.

Which of the above statements is/are correct?

3. Consider the following regarding office of profit

1. Constitution bars an elected representative- MP or MLA from holding office of profit.
2. Constitution clearly defines what constitutes office of profit.
3. Parliament /state legislature can through a law exempt an office from office of profit.

Which of the above statements is/are correct?

4. Australia’s Bureau of Meteorology (BOM) predicted August 25, 2022, that a third consecutive event of La Nina could be underway. Which of the following can be the impact of La Nina

1. La Nina is the unusual warming of the tropical eastern Pacific whereas El Nino is unusual cooling.
2. La Nina causes drought in India whereas El Nino causes flooding.
3. La Nina occurs at regular intervals while El Nino is an  irregular phenomenon.

Which  of the above statements is/are incorrect?

5. Which of the following can be the benefit of “Software as a Service (SaaS)”

1. SaaS can provide notable savings
2. The learning curve of SaaS is simpler and less time taking.
3. The pay-as-you-go mode gives flexibility

Select the correct answer