The Government securities market consists of securities issued by the State and the Central governments. Government securities include Central Government securities, Treasury bills and State Development Loans. All these are issued for which of the following purposes?a)to finance the fiscal deficitb)managing the temporary cash mismatches of the Governmentc)to lend to other Least developed countriesd)Both a and be)None of the aboveCorrect answer is option 'D'. Can you explain this answer?

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a)
to finance the fiscal deficit
b)
managing the temporary cash mismatches of the Government
c)
to lend to other Least developed countries
d)
Both a & b
e)
None of the above

Correct answer is option 'D'. Can you explain this answer?

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The Government securities market consists of securities issued by the...

The Government securities market consists of securities issued by the State and the Central governments. Government securities include Central Government securities, Treasury bills and State Development Loans. They are issued in order to finance the fiscal deficit and managing the temporary cash mismatches of the Government. All entities registered in India like banks, financial institutions, Primary Dealers, firms, companies, corporate bodies, partnership firms, institutions, mutual funds, Foreign Institutional Investors, State Governments, Provident Funds, trusts, research organisations, Nepal Rashtra bank and even individuals are eligible to purchase Government Securities. They are generally held by banks and institutions with the Reserve Bank of India in Subsidiary General Ledger accounts. They can be held in special accounts known as Constituent Subsidiary General Ledger (CSGL) accounts which can be opened with banks and Primary Dealers or in dematerialised form in demat accounts maintained with the Depository Participants of NSDL.

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