ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Issued in multiples of RM 1000
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Can be traded in secondary market
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Maturities not exceeding one year
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Price is determined by forces of supply and demand
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Detailed explanation-1: -G-Secs are available in a wide range of maturities from 91 days to as long as 40 years to suit the duration of varied liability structure of various institutions. G-Secs can be sold easily in the secondary market to meet cash requirements. G-Secs can also be used as collateral to borrow funds in the repo market.
Detailed explanation-2: -The Malaysia 1 Year Government Bond has a 3.180% yield.
Detailed explanation-3: -MGS are long-term bonds issued by the Government of Malaysia for financing developmental expenditure. MGS are fixed-rate coupon bearing bonds with bullet repayment of principal upon maturity while coupon payments are made semi-annually.
Detailed explanation-4: -Bills. Bills are short-term securities that mature in one year or less. They are sold at face value (also called par value) or at a discount.