Which of the Following Is Not True Regarding Federal Agency

question 60

Multiple Choice

Which of the following is not true regarding Federal Agency debt issues from Fannie Mae or Ginnie Mae?

• A)Agency debt issues do not have the same guarantee as U.S.Treasury securities.
• B)Agency debt issues often have a slightly higher interest rate than U.S.Treasury securities.
• C)Agency debt issues are callable before the maturity date.
• D)Investing in agency debt issues is simpler than buying and selling U.S.Treasury securities.
• E)Agency debt issues are not sponsored by the U.S.government.

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Definitions:

Recessionary Period

A period of economic decline during which trade and industrial activity are reduced, typically recognized by a fall in GDP in two successive quarters.

Standard Deviation

A measure of the dispersion or variability in a set of data points or investment returns, indicating how much variation exists from the average.

Expected Return

The anticipated average return of an investment over a given period, factoring in all possible outcomes.

Portfolio Return

The overall gain or loss generated by an investment portfolio over a particular period of time, taking into account both capital gains and income received.