Q. Consider the following statements: 

1. There is almost no speculation in the G-sec market 
2. The Investors in the G-Sec Market are predominantly the institutions

Which among the above statements is / are correct
Answer: Both 1 & 2 are correct
Notes: The correct answer is "Both 1 & 2 are correct." 1. The G-sec (Government Securities) market is characterized by low speculation due to the stability and low risk associated with government bonds, making them a safe investment. 2. Institutional investors, such as banks, insurance companies, and pension funds, dominate the G-sec market, accounting for a important portion of trading volume. In India, for instance, institutions hold over 80% of G-secs, reflecting their preference for stable returns.