Economics: government securities G-Sec types, issuer and fiscal deficit
🛡️ *Government Securities (G-Sec)* ♟️A Tradable instrument issued by the Central Government or the State Governments. ♟️A G-Sec is a type of debt instrument issued by the government to borrow money from the public to finance its Fiscal Deficit. *💎Kinds* ♟️ *Short* Term (usually called treasury bills, with original maturities of less than one year ♟️ *Long* Term (usually called Government bonds or dated securities with original maturity of one year or more) 💎 *Issuer* ♟️Central Government - issues both, treasury bills & bonds or dated securities ♟️State Government - Only bonds or dated securities [State Development Loans (SDLs)] ♟️G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments. ♟️ *Issue Mechanism* The RBI conducts Open Market Operations (OMOs) for sale or purchase of G-secs to adjust money supply conditions.
Divya Daryani · 5mo ago
Thanks for sharing
Satya · 5mo ago
@KotaDivya Tq medam