@@manjusingh5458 that comes under faith, in other words the ability to payback is similar to a company's brand value. It is an intangible asset and therefore it is ultimately determined by the consumer (or in this case the bondholder's) "perception" of the ability to payback or the brand value to give return on his/her investment. In other words the bondholder thinks that although the government does not have a backing asset but it has the credibility (faith) which has been built over time by the government by paying back their bond holders therefore he/she invests (i.e. purchases the bond)
Treasury waala v glt btaye ho .....😂😂😂😂 Padh ke aao phir padhana
Ho sakta hai. Thanks for pointing it out.
Not only the faith but also the credit of the government.
you are referring to Credit= goodwill/reputation ? or the credit-credit ?
Government ability to pay
@@manjusingh5458 that comes under faith, in other words the ability to payback is similar to a company's brand value. It is an intangible asset and therefore it is ultimately determined by the consumer (or in this case the bondholder's) "perception" of the ability to payback or the brand value to give return on his/her investment. In other words the bondholder thinks that although the government does not have a backing asset but it has the credibility (faith) which has been built over time by the government by paying back their bond holders therefore he/she invests (i.e. purchases the bond)
View paane ke liye koi v tarika apna lo chahe khud ka concept ho ya nhi
As I said in the video "as far as I know" If I'm wrong please correct me. And now that you have pointed out thankyou. Will try to improve.