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

Answer 1

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.