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    Question

    The price of the Sovereign Gold Bond is fixed in Indian

    rupees is based on simple average of closing price of 999 purity gold of how many days?
    A 2 days Correct Answer Incorrect Answer
    B 3 days Correct Answer Incorrect Answer
    C 5 days Correct Answer Incorrect Answer
    D 7 days Correct Answer Incorrect Answer
    E 10 days Correct Answer Incorrect Answer

    Solution

    The sovereign gold bond (SGB) scheme was launched in November 2015 with an objective to cut down the demand for physical gold and shift a part of the domestic savings – used for the purchase of gold – into financial savings.  ·         The bonds are denominated in multiples of gram(s) of gold with a basic unit of one gram. ·         The tenor of the bond will be for a period of eight years with exit option after fifth year to be exercised on the next interest payment dates. ·         The minimum permissible investment is one gram of gold and the maximum limit of subscription is 4 kg for individual, 4 kg for HUF and 20 kg for trusts and similar entities per financial year. ·         SGB comes with a 2.5% coupon attached and tax advantage for its investors. ·         The price of the bond is fixed in Indian rupees on the basis of a simple average of the closing price of gold of 999 purity , published by the India Bullion and Jewellers Association (IBJA) for the last three working days of the week preceding the subscription period

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