Multiple choice general knowledge

What is the main attribute of a Gilt-Edged stock?

  1. Bonds issued by the government whose likelihood of default is zero

  2. A stock backed by gold.

  3. Stocks which are linked to the inflation rate

  4. Stocks doing well in the capital market
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A Correct answer
Explanation

Gilt-edged stocks refer to high-quality government bonds (primarily UK government securities) that are considered extremely safe with minimal default risk. The term comes from the gold- or 'gilt'-edged certificates historically issued. The name has nothing to do with gold backing, inflation linking, or stock market performance.

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