GS PrelimsEconomyFinancial Institutions and Financial markets2000
Gilt-edged market means
A
bullion market
B
market of Government securities
C
market of guns
D
market of pure metals
Correct Answer: Option B
Explanation
1. The term "Gilt-edged" historically referred to certificates with gilded edges, signifying high quality.
2. In financial markets, the "gilt-edged market" specifically refers to the market for securities issued by the government.
3. These government securities (like bonds) are considered very low-risk ('gilt-edged') because the government is highly unlikely to default on its debt obligations.
4. It is distinct from the bullion market (trading precious metals), market of guns, or general market of pure metals.