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What are gilt-edged securities?
- a)It is a tradable short-term instrument whose maturity is up to 90 days issued by the central government.
- b)These are the dated-securities issued only by the central government.
- c)These are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
What are gilt-edged securities?a)It is a tradable short-term instrumen...
• Option (c) is correct: Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Government Securities (G-Secs)
• G-Secs is a tradable instrument issued by the Central Government or the State Governments.
• Securities are issued for short term as well as long term. Short term securities with maturity less than 1 year are called Treasury Bills (T-Bills) while long term securities with a maturity of 1 year or more are called Government Bonds or dated securities.
• G-Sec Bonds features:
1. Long term maturity above 1 year and up to 40 years.
2. The interest rate paid on face value payable half-yearly
3. Effective yield return depends on the issue price.
• In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
• G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Government Securities (G-Secs)
• G-Secs is a tradable instrument issued by the Central Government or the State Governments.
• Securities are issued for short term as well as long term. Short term securities with maturity less than 1 year are called Treasury Bills (T-Bills) while long term securities with a maturity of 1 year or more are called Government Bonds or dated securities.
• G-Sec Bonds features:
1. Long term maturity above 1 year and up to 40 years.
2. The interest rate paid on face value payable half-yearly
3. Effective yield return depends on the issue price.
• In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
• G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Most Upvoted Answer
What are gilt-edged securities?a)It is a tradable short-term instrumen...
Gilt edge securities can be thought of as bonds of high value and less risk. These are mostly offered by governments and blue chip companies or corporations with high credit rating. These were first introduced Bank ofEngland and carry the name because of the gilt edged paper that was used.
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What are gilt-edged securities?a)It is a tradable short-term instrumen...
• Option (c) is correct: Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Government Securities (G-Secs)
• G-Secs is a tradable instrument issued by the Central Government or the State Governments.
• Securities are issued for short term as well as long term. Short term securities with maturity less than 1 year are called Treasury Bills (T-Bills) while long term securities with a maturity of 1 year or more are called Government Bonds or dated securities.
• G-Sec Bonds features:
1. Long term maturity above 1 year and up to 40 years.
2. The interest rate paid on face value payable half-yearly
3. Effective yield return depends on the issue price.
• In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
• G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Government Securities (G-Secs)
• G-Secs is a tradable instrument issued by the Central Government or the State Governments.
• Securities are issued for short term as well as long term. Short term securities with maturity less than 1 year are called Treasury Bills (T-Bills) while long term securities with a maturity of 1 year or more are called Government Bonds or dated securities.
• G-Sec Bonds features:
1. Long term maturity above 1 year and up to 40 years.
2. The interest rate paid on face value payable half-yearly
3. Effective yield return depends on the issue price.
• In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
• G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
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What are gilt-edged securities?a)It is a tradable short-term instrument whose maturity is up to 90 days issued by the central government.b)These are the dated-securities issued only by the central government.c)These are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
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What are gilt-edged securities?a)It is a tradable short-term instrument whose maturity is up to 90 days issued by the central government.b)These are the dated-securities issued only by the central government.c)These are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What are gilt-edged securities?a)It is a tradable short-term instrument whose maturity is up to 90 days issued by the central government.b)These are the dated-securities issued only by the central government.c)These are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are gilt-edged securities?a)It is a tradable short-term instrument whose maturity is up to 90 days issued by the central government.b)These are the dated-securities issued only by the central government.c)These are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
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