Which of the following statements is correct regarding the government securities in the economy? I. It is a tradeable instrument issued by the Central Government or the State Governments. II. They are called risk-free gilt-edged instruments.
- A.Neither I nor II
- B.Only I
- C.Only II
- D.Both I and II
Show answer
Statement I is right, because a government security, or G-Sec, is a tradeable debt instrument issued by the central government or by a state government and can be bought and sold in the secondary market before it matures.
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