Q. Investment in which among the following is the Most Risk Free asset of a Bank as per the RBI guidelines?
Answer: Government Securities
Notes: The most risk-free asset for banks, as per RBI guidelines, is Government Securities. These are debt instruments issued by the government to raise funds, backed by the government's creditworthiness. They are considered low-risk because they are less likely to default compared to other investments. In India, government securities include Treasury Bills and Government Bonds, which are essential for maintaining liquidity and stability in the banking system.