B.P.S.C. C.D.P.O. (Pre) 2018

Which of the following investors or agencies can purchase Government of India securities? I. The Reserve Bank of India II. Individuals III. Financial Institution Select the correct answer using the code given below.

aI only
bI, II and III✓ Correct
cI and II only
dII and III only
eNone of the above/More than one of the above

Explanation

The Reserve Bank of India, individuals, and financial institutions—all three—can buy Government of India securities. Government securities are mandatorily tradable financial instruments issued by the Central and State Governments, which acknowledge the Government’s liability for borrowing.

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