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With reference to the government securities, consider the following statements:
1. Retail investors can open their RBI gold accounts and trade in government securities directly.
2. All government bonds are tax-free.
Which of the statements given above is/are correct?
  • a)
    1 only 
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
With reference to the government securities, consider the following st...
The Reserve Bank of India (RBI) said that it will give small investors direct access to its government securities trading platform.
  • Retail investors can directly open their gilt accounts with RBI, and trade in government securities. The RBI Governor described this as a “major structural reform.”
  • Government Securities (or g-secs) are debt instruments issued by the government to borrow money.
  • The two key categories are
    • treasury bills – short-term instruments which mature in 91 days, 182 days, or 364 days, and
    • dated securities – long-term instruments, which mature anywhere between 5 years and 40 years.
  • Like bank fixed deposits, g-secs are not tax-free.
  • They are generally considered the safest form of investment because they are backed by the government. So, the risk of default is almost nil. However, they are not completely risk-free, since they are subject to fluctuations in interest rates.
  • Bank fixed deposits, on the other hand, are guaranteed only to the extent of Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
     
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With reference to the government securities, consider the following statements:1. Retail investors can open their RBI gold accounts and trade in government securities directly.2. All government bonds are tax-free.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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With reference to the government securities, consider the following statements:1. Retail investors can open their RBI gold accounts and trade in government securities directly.2. All government bonds are tax-free.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? for Current Affairs 2024 is part of Current Affairs preparation. The Question and answers have been prepared according to the Current Affairs exam syllabus. Information about With reference to the government securities, consider the following statements:1. Retail investors can open their RBI gold accounts and trade in government securities directly.2. All government bonds are tax-free.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Current Affairs 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the government securities, consider the following statements:1. Retail investors can open their RBI gold accounts and trade in government securities directly.2. All government bonds are tax-free.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?.
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