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A)
1 only
B)
2 only
C)
Both 1 and 2
D)
Neither 1 nor 2

Correct Answer : Option (A) - 1 only


Gold Exchange Traded Funds (ETFs) are simple investment products that combine the flexibility of stock investment and the simplicity of gold investments.

Gold ETF, which aims to track the domestic physical gold price, are passive investment instruments that are based on gold prices and invest in gold bullion. Hence, statement 1 is correct.

Gold ETFs are units representing physical gold which may be in paper or dematerialised form.

One gold ETF unit is equivalent to one gram of gold and is backed by exceptionally pure physical gold. Hence, statement 2 is not correct.

Source : Indianexpress

Published On : August 11, 2022
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