Consider the following statements about Sovereign Gold Bond Scheme:

  1. The scheme helps to prevent country’s foreign exchange
  2. The bonds are tradable through stock exchanges 
  3. The gold bond can be used as collateral to avail a loan
  4. Capital gain tax will be exempted on redemption

 Which of the above statements are correct?

Answer: [D] 1, 2, 3 & 4

All given statements are correct
Investing in the Gold Bond scheme helps as there will be zero risk from handling physical gold. The bonds are tradable through stock exchanges. The gold bond can be used as collateral to avail a loan. Capital gain tax will be exempted on redemption.

This question is a part of GKToday's Integrated IAS General Studies Module