SSC Economics Sample Paper NCERT Sample Paper-2

  • question_answer
    What are gilt-edged securities?

    A) Securities issued by the multinationals

    B) Securities issued by the government or blue chip companies

    C) Securities issued by the private sector

    D) Securities issued by the joint venture companies

    Correct Answer: B

    Solution :

    Gilt-edged securities are a high-grade investment with very low risk. High-grade bonds that are issued by a government or blue chip companies that dependably meet dividend or interest payments because they are well- established and financially stable. This type of security originally boasted gilded edges, thus the name. In the case of a firm, a gilt-edged security is a stock or bond issued by a company that has a strong record of consistent earnings and can be relied on to cover dividends and interest.

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