Home › JAIIB › IE&IFS › Unit 32

JAIIB · Indian Economy & Indian Financial System · Module D — Financial Products and Services

JAIIB IE&IFS Unit 32 — Fixed Income Markets (Debt and Bond Markets): Free MCQs with Explanations

By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 1 of the November 2026 cycle (1 November 2026)

This page is a free slice of our JAIIB IE&IFS question bank for Unit 32 — Fixed Income Markets (Debt and Bond Markets) (Module D — Financial Products and Services). The Mock Centre holds 42 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.

IE&IFS · Module D42 MCQs in the Mock Centre5 free belowPaper on 1 November 2026

Key facts examiners test from this unit

  1. Gilts = Central G-secs + T-bills + SDLs; par ₹100; half-yearly coupon; dated securities named [Coupon% GOI MaturityYear] — 2018 + 10 years @7.85% = 7.85% GOI 2028 (maturity year, NOT issue year).
  2. Holders: commercial banks largest (47.25%→40.41%, declining); insurers rising (25.09%); banks hold ≤10-year paper, insurers dominate >25-year (90.4%).
  3. Custody: SGL accounts with RBI (CSGL for clients); minimum ₹10,000 and multiples; bids on E- Kuber; non-competitive retail window ₹10,000–₹2 crore at weighted average.

5 free practice questions — tap an option

Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.

Question 1 of 5
Government securities (Gilts) include:
Why (b): Government securities — 'Gilts' — include the FULL sovereign family: DATED G-SECS, T-BILLS AND SDLs.
Question 2 of 5
G-secs are auctioned via:
Why (b): G-secs are auctioned via MULTIPLE-PRICE and UNIFORM-PRICE formats — pay-your-bid versus pay-the-cut-off.
Question 3 of 5
Primary Dealers were introduced in:
Why (c): Primary Dealers were introduced in 1995 — the reform era's market-makers for government securities.
Question 4 of 5
A Primary Dealer is an RBI-registered entity that:
Why (b): A Primary Dealer is an RBI-registered entity LICENSED TO BUY AND SELL G-SECS — underwriting auctions and making markets.
Question 5 of 5
State Development Loans are issued by:
Why (b): State Development Loans fund STATE GOVERNMENT EXPENDITURES — the states' market borrowings, auctioned through RBI.
0 of 5 answered.

Traps in this unit

Confusable AConfusable BThe difference
Maturity yearIssue yearThe G-sec name uses MATURITY (2028, not 2018)
Commercial banksInsurance companiesShort-bucket vs 25-year-plus dominance
Practise all 42 questions on Unit 32. The free demo opens a slice of every subject with the same explanations; the IE&IFS Online-only pass unlocks all 3,032 IE&IFS questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Take the free test Open the free demo

← Unit 31: Capital Markets and Stock Exchanges · Unit 33: Foreign Exchange Markets → · All IE&IFS units · JAIIB 2026 guide

Related reading

Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.