SSC Economics Sample Paper NCERT Sample Paper-1

  • question_answer
    Many times we read in newspapers that several companies are adopting the FCCBs route to raise capital. What is the full form of FCCBs?

    A)  Foreign Currency Convertible Bonds

    B)  Foreign Consortium & Credit Bureau

    C)  Financial Consortium & Credit Bureau

    D)  Future Credit & Currency Bureau

    Correct Answer: A

    Solution :

    [a] A Foreign Currency Convertible Bond (FCCB) is a type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. It gives two options. One is, to get the regular interest and principal and the other is to convert the bond in to equities. It is a hybrid between bond and stock.

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