Which of the following is issued by the Central Government?*SDLG-secsTrepsDebentures
Question
Which of the following is issued by the Central Government?
- SDLG
- secs
- Treps
- Debentures
Solution
The Central Government issues SDL (State Development Loans). These are securities issued by the states of India for raising resources.
Here's a step-by-step breakdown:
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SDL (State Development Loans): These are issued by the Central Government on behalf of the State Governments. They are dated securities and have a fixed tenure. The Central Government does not guarantee the repayment of these loans; instead, the repayment responsibility lies with the issuing state.
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G-secs (Government Securities): These are issued by the Central Government. They are considered to be the safest form of investment as they are backed by the Government of India.
-
Treps (Tri-party Repo): These are not issued by the Central Government. They are a type of repo contract where a third entity (apart from the borrower and lender) called a Tri-Party Agent manages the transactions.
-
Debentures: These are not issued by the Central Government. They are issued by companies to raise debt. They are similar to bonds except that they are not secured by physical assets or collateral.
So, among the options given, SDL and G-secs are issued by the Central Government.
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