Question
The gift edged market in the capital market of India refers to
Answer: Option A
Answer: (a)
The gilt-edged market refers to the market for Government and semi-government securities, backed by the Reserve Bank of India (RBI). Government securities are tradeable debt instruments issued by the Government for meeting its financial requirements.
The term gilt-edged means 'of the best quality'. This is because the Government securities do not suffer from the risk of default and are highly liquid (as they can be easily sold in the market at their current price).
The open market operations of the RBI are also conducted in such securities.
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Answer: (a)
The gilt-edged market refers to the market for Government and semi-government securities, backed by the Reserve Bank of India (RBI). Government securities are tradeable debt instruments issued by the Government for meeting its financial requirements.
The term gilt-edged means 'of the best quality'. This is because the Government securities do not suffer from the risk of default and are highly liquid (as they can be easily sold in the market at their current price).
The open market operations of the RBI are also conducted in such securities.
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