Question:

What is Government Securities Market?

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Remember: Govt. Securities = Safe investment backed by government.
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Solution and Explanation

Concept: The Government Securities Market is a part of the capital market where government-issued securities are traded.
Step 1: Definition.
It is a market where securities issued by the government (such as treasury bills and government bonds) are bought and sold.
Step 2: Types of securities.
  • Treasury Bills (short-term)
  • Government Bonds (long-term)

Step 3: Purpose.
  • To raise funds for government expenditure
  • To manage public debt
  • To provide safe investment options

Step 4: Features.
  • Low risk (backed by government)
  • Fixed returns
  • Highly secure investments

Step 5: Conclusion.
Thus, the Government Securities Market is a secure and important segment of the financial market for raising and investing funds.
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