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Question
Rahim has given a loan of ₹ 5 lakhs to a fertilizer company. The company pays him interest regularly and the company has promised to return his amount after 5 years. Rahim has invested in ______.
Options
Equity shares
Preference shares
Debentures
Ownership securities
Solution
Rahim has given a loan of ₹ 5 lakhs to a fertilizer company. The company pays him interest regularly and the company has promised to return his amount after 5 years. Rahim has invested in Debentures.
Explanation:
Rahim has invested in the debentures of the company, as his investment is considered a loan on which interest is paid at a fixed rate.
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