what is government securities??? plz help?

Question

what is government securities? and in what case would the RBA buy and sell ?? its sounds really complicated to me.. plz help

Answer 1

Government securities are bonds issued by the government. RBA (I assume it stands for Reserve Bank of Australia, which is the Australian central bank) would buy those bonds when it wants to expand money supply and sell them when it wants to contract money supply.

Answer 2

they are government bonds. they are promises by the gov to the holder at some point in time a certain amount of money

a central bank would buy gov securities to increase the money supply - to pump money into the economy - to stimulate the economy

a central bank would sell bonds to lower the money supply - to take money out of the economy - to slow the economy to fight inflation

Answer 3

Government Securuties :
-Securities issued by the US Treasury or federal agencies.
www.tgbr.com/tgbr/terms.html

-Bonds (maturities of longer than 10 years), notes (maturity of more than one year to 10 years), and bills (maturity of one year or less) that are backed by a local, state or federal agency. Treasury bonds and notes are considered to be the least risky securities as the full faith and credit of the US Government back them. ...
www.preferredgroup.com/PlanningLearning/Terms.aspx

-Government securities - as the name suggests - are securities issued by governments. What this means in practice is short and long-term debt issued by governments. The public sector generally faces a funds deficit. Bonds provide long-term finance, but these tend to be supplemented by regular issues of short-term securities, either rolled-over regularly to finance part of the public debt or to cover temporary shortfalls in fiscal revenue.
www.cperformance.com/glossary.htm

-The short- and long-term bonds the government sells to finance its expenditures.
www.ca.uky.edu/agc/pubs/aec/aec75/aec75.htm

-Government debt ("public debt", "national debt") is money owed by government, at any level (central government, federal government, national government, municipal government, local government, regional government).
en.wikipedia.org/wiki/Government_securities