A Public Debt Office works as investment banker to the ____________.

Correct option is B

The correct answer is (b) Government

Explanation:

A Public Debt Office (PDO) works as an investment banker to the Government. Its primary role is to manage the government's public debt, which includes the issuance, servicing, and management of government securities. The PDO ensures that the government's borrowing is done in a cost-effective manner, helping maintain fiscal discipline and liquidity in the economy. This office works closely with financial institutions, markets, and the Reserve Bank of India (RBI) to manage the public debt portfolio.

Information Booster:

•  The Public Debt Office is typically a part of the Ministry of Finance.
•  Its functions include raising funds for the government by issuing treasury bills, bonds, and other government securities.
•  The PDO also manages the government's internal and external debt and aims to reduce borrowing costs.
•  It plays a crucial role in debt management strategy and helps in meeting fiscal targets set by the government.
•  The office liaises with institutions like the RBI and commercial banks to facilitate debt issuance and management.
•  It also advises the government on debt restructuring and interest rate management.

Additional Information:

•  Commercial Banks play a role in underwriting and distributing government debt but are not the primary counterpart of the PDO.
•  The Public is the ultimate investor in government debt instruments but does not interact directly with the PDO.
•  The RBI plays a role in public debt management but is not the entity to which the PDO directly acts as an investment banker.