Question : Which of the following statements is correct regarding the government securities in the economy?
I. It is a tradeable instrument issued by the Central or State Governments.
II. They are called risk-free, gilt-edged instruments.
Option 1: Neither I nor II
Option 2: Only I
Option 3: Only II
Option 4: Both I and II
New: SSC CHSL tier 1 answer key 2024 out | SSC CHSL 2024 Notification PDF
Recommended: How to crack SSC CHSL | SSC CHSL exam guide
Don't Miss: Month-wise Current Affairs | Upcoming government exams
Correct Answer: Both I and II
Solution : The correct option is Both I and II.
I. Government securities are debt instruments issued by the government to raise funds for various purposes. They are traded on the secondary market, allowing investors to buy and sell them before their maturity date.
II. While no investment is entirely risk-free, government securities are considered highly secure due to the low probability of the government defaulting on its debt. This low risk gives them the label "gilt-edged" instruments. However, risks, like interest rate fluctuations and changing government policies, can still affect their value.
Related Questions
Know More about
Staff Selection Commission Combined High ...
Result | Eligibility | Application | Admit Card | Answer Key | Preparation Tips | Cutoff
Get Updates Brochure
Your Staff Selection Commission Combined Higher Secondary Level Exam brochure has been successfully mailed to your registered email id “”.
