Economics · Economy
Government securities (G-Secs) are generally referred to as 'gilt-edged' risk-free instruments because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1They offer complete exemption from all forms of direct and indirect taxes
- 2They are entirely insured against interest rate fluctuations by SEBI
- 3They carry a sovereign guarantee as they are issued by the Government✓
- 4They are fully collateralized by commercial banks' reserves
Correct answer
They carry a sovereign guarantee as they are issued by the Government
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