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Throw light on various types of debt instruments issued by governments, corporations, financial institutions, and others to raise funds from investors.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

4. Throw light on various types of debt instruments issued by governments, corporations, financial institutions, and others to raise funds from investors. (150 words)

Difficulty level: Easy

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2023 Secure timetable.

Key Demand of the question:

To write about various types of debt instruments available in the Indian market.

Structure of the answer:

Introduction: 

Begin by defining a debt instrument.

Body:

Write about the various type of debt instruments – government securities, corporate bonds, debentures, commercial papers, certificates of deposit, and money market instruments. Explain them in brief with suitable examples.

Conclusion:

Conclude by summarising their importance.