ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Central Government
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State Government
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Semi Government Authorities
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All of the above
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Detailed explanation-1: -Government securities in the form of GPN, bearer bond, stock and BLA are issued by RBI, while the Agency Banks are presently eligible to issue Relief/Savings Bonds in the form of BLA only.
Detailed explanation-2: -1.2 A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation.
Detailed explanation-3: -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).
Detailed explanation-4: -For most readers, the most common types of government securities are those items issued by the U.S. Treasury in the form of Treasury bonds, bills, and notes. However, the governments of many nations will issue these debt instruments to fund necessary ongoing operations.