n NISM Certifications
XXI NISM Series XXI-A
Medium

Government securities carry practically no risk of ________ and, hence are called risk-free or gilt-edged instruments.

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Negotiability

  2. B

    Tradability

  3. C

    Liquidity

  4. Default

    Correct answer

Why this is the answer

G-Secs are backed by the government and considered virtually risk-free regarding default.

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