GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equities
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Debentures
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Corporate Bonds
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Government Securities
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Detailed explanation-1: -A primary dealer is a bank or other financial institution that has been approved to trade securities with a national government. Primary government securities dealers sell the Treasury securities that they buy from the central bank to their clients, creating the initial market.
Detailed explanation-2: -The Federal Reserve buys and sells government securities to control the money supply and interest rates. This activity is called open market operations.
Detailed explanation-3: -Secondary markets are markets where government securities are traded after they have been issued or sold on primary markets. A liquid secondary market is an important source of price signals and is therefore essential for the orderly funding of government financing requirements.