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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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