Multiple choice

What are gilt - edged securities?

  1. Securities issued by government

  2. Securities issued by private sectors

  3. Securities issued by joint sector

  4. Securities issued by multinational

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A Correct answer
Explanation

Gilt-edged securities are government bonds or debt securities that are considered extremely safe investments because they are backed by the government's sovereign guarantee. The term 'gilt-edged' refers to the highest quality, similar to gold edges in books. These carry minimal risk of default and offer stable returns, making them preferred investments for risk-averse investors.