Government securities are financial instruments issued by a government to raise funds for various public projects and services. These securities are considered low-risk investments because they are backed by the government's ability to tax and generate revenue. Common types include Treasury bonds, Treasury bills, and Treasury notes in the United States.
Investors purchase government securities to earn interest over time, making them a popular choice for those seeking stable returns. The interest rates on these securities can vary based on economic conditions and government policies, but they generally provide a reliable source of income for individuals and institutions alike.