Gilt-edged market means
Reviewed by Dalvoy
UPSC Civil Services preparation
- Abullion market
- Bmarket of Government securitiesCorrect
- Cmarket of guns
- Dmarket of pure metals
Explanation
The correct answer is B because the gilt edged market refers specifically to the market for government securities. These securities are issued by the government to borrow money from the public or financial institutions.
The term originates from the historical practice where government bond certificates were issued with gold gilded edges to signify their high quality and reliability. Because they are backed by the government, these instruments are considered risk free or high grade investments with no chance of default, distinguishing them from corporate bonds or other private securities.
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