Quiz on Sovereign Gold Bond Scheme by RBI

Select the appropriate options w.r.t Sovereign Gold Bond (SGB)

SGBs are government securities issued in grams of gold

SGBs are substitutes for physical gold

SGBs have a lock in period of minimum 5 years

The costs and risks of storing SGBs are eliminated

All those options given

Correct! Wrong!

Who issues Sovereign Gold Bond ?

Reserve Bank of India on behalf of Government of India

Reserve Bank of India

State Bank of India

Tanishq and Joyalukkas on behalf of Government of India

Government of India

Correct! Wrong!

Who are the eligible participants to invest in Sovereign Gold Bonds ?

Individuals, HUFs, trusts, Universities and Charitable institutions

Persons resident in India as defined under Foreign Exchange Management Act, 1999

Foreign Residents

Non Resident Indians

Both 1 and 2

Correct! Wrong!

What are the risks associated with Sovereign Gold Bond ?

Market Risk, Loss of capital if the Gold price declines

No Risk involved

Risk of theft

Default Risk

All of those options given

Correct! Wrong!

What are the benefits of Sovereign Gold Bond as compared to Physical Gold ?

The costs and risks of storing gold are eliminated

Assured periodical Interest and assured market value of gold on the date of maturity

No risk of loss of bond, since the bond is held in the book of RBI or in dematerialised form

SGB doesn't has any making charges and no issues with respect to purity like in case of gold jewellery

All of those given options

Correct! Wrong!

Is joint holding allowed in SGB ?

Yes

Correct! Wrong!

What is the minimum investment in SGB ?

1 Kg

100 Grams

10 Grams

1 Gram

5 Grams

Correct! Wrong!

What is the maximum investment in SGB ?

4 kgs for individuals, 4 kgs for HUF (Hindu Undivided Family) & 20 kgs for trusts per fiscal year (April to March)

1 kg for individuals, 4 kgs for HUF (Hindu Undivided Family) & 20 kgs for trusts per fiscal year (April to March)

4 kgs for individuals, 4 kgs for HUF (Hindu Undivided Family) & 10 kgs for trusts per fiscal year (April to March)

5 kgs for individuals, 10 kgs for HUF (Hindu Undivided Family) & 20 kgs for trusts per fiscal year (April to March)

5 kgs for individuals, 5 kgs for HUF (Hindu Undivided Family) & 20 kgs for trusts per fiscal year (April to March)

Correct! Wrong!

Select the appropriate options w.r.t interest on investment in Sovereign Gold Bond (SGB)

Fixed rate of 2.50 % interest is paid every year on the initial investment amount

Interest is paid on half yearly basis directly to the investor's bank account

Interest is paid even if the Gold prices decline

Income Tax is applicable on the interest earned from SGBs

All of the options given

Correct! Wrong!

Quiz on Sovereign Gold Bond

Thank you for participating in the quiz!

Quiz on Sovereign Gold Bond

Select the appropriate options w.r.t Sovereign Gold Bond (SGB)

Who issues Sovereign Gold Bond ?

Who are the eligible participants to invest in Sovereign Gold Bonds ?

What are the risks associated with Sovereign Gold Bond ?

What are the benefits of Sovereign Gold Bond as compared to Physical Gold ?

Is joint holding allowed in SGB ?

What is the minimum investment in SGB ?

What is the maximum investment in SGB ?

Select the appropriate options w.r.t interest on investment in Sovereign Gold Bond (SGB)

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