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Premature redemption of its own securities by the Government is a:

ABailout
BBuyback
CBuyout
DBuy-in
Answer & Solution
Correct answer: B. Buyback
1. The Government redeems from existing holders. 2. It can cut cost and improve market liquidity. 3. The process is a repurchase or buyback. _Source: RBI, FAQs on the Government Securities Market in India_
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