Question : What are gilt-edged securities?
Option 1: Securities issued by multinational companies
Option 2: Securities issued by the government
Option 3: Securities issued by the private sector
Option 4: Securities issued by the joint venture companies
Correct Answer: Securities issued by the government
Solution : The correct option is Securities issued by the government
Government bonds are known as gilt-edged securities or just gilts and are known to be exceptionally secure financial instruments. Governments print them to raise money. These bonds have little risk since they are very creditworthy and are backed by the government's credit.
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