Question

Why do Government Securities provide investors with adequate liquidity?

a.

They have variable coupon rates

b.

They are backed by the RBI

c.

They are issued by the Central Government

d.

They are freely and easily tradable in the secondary market

Answer: (d).They are freely and easily tradable in the secondary market Explanation:Government securities provide investors with liquidity because they are freely and easily tradable in the secondary market.

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