Mains Question:
Question: How Government Securities (G-Sec) help Indian Government in financial debt management? Also discuss why the G-Sec is volatile in nature and its implication on the Indian Economy?
Question Mapping
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Approach:
- Introducewith what are Government security instruments and how they are traded.
- Here in short explain the characteristics and functioning of G-Secand their obligations on Indian Government.
- Now discuss the volatility of G-sec in the secondary marketand how it impacts the Indian Economy.
- Concludewith how effectively G-Sec can be used and help Government of India in management of Debt.