BANKING AFFAIRS

Detailed explanation-1: -Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a method of borrowing funds. The issuing institutions typically boast strong track records of consistent earnings that can cover dividend or interest payments.

Detailed explanation-2: -Detailed Solution Gilt-edged are high graded low-risk investment instruments issued by the government. Gilt-edged term is used mostly in markets where government securities and bonds are traded. A gilt-edged denotes a high-quality item whose value remains fairly constant over time.

Detailed explanation-3: -The correct answer is Government Securities. Key Points. Gilt-edged securities are high-grade bonds issued by certain national governments. Government security means a security created and issued by the Government for the purpose of raising a public loan or for any other purpose.

Detailed explanation-4: -In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs). G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.