Why Do Businesses Invest in Government Backed Securities?
Businesses invest in government backed securities for several reasons:
Low Risk: These securities are considered very safe as they are backed by the government. Liquidity: They can be easily converted to cash, providing liquidity to the business. Stable Returns: They offer predictable and stable returns, which is appealing for financial planning. Diversification: Investing in these securities helps diversify the investment portfolio, reducing overall risk.