2000 General Studies, all questions

UPSC Prelims 2000 · General Studies

Question 22: Economy and Social Development

Gilt-edged market means

abullion market
bmarket of Government securities
cmarket of guns
dmarket of pure metals

AnswerThe answer is (b).

Gilt-edged securities are government bonds and treasury bills of the Union and State governments. They are called gilt-edged because the government pays interest and principal without default risk. The market where they are bought and sold is the gilt-edged market. It has nothing to do with bullion, which is gold and silver, nor with guns or pure metals.

Why each option is right or wrong
  • (a) The bullion market deals in gold and silver.
  • (b) Right: the gilt-edged market is the market of Government securities.
  • (c) Gilt-edged has nothing to do with guns.
  • (d) Pure metals are not traded in the gilt-edged market.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2000, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.