Which One of the Following Statements Correctly Relates to GNMA

question 8

Multiple Choice

Which one of the following statements correctly relates to GNMA securities?

• A)The primary risk associated with GNMA securities is default risk.
• B)The minimum denomination of a GNMA security, when issued, is $1,000.
• C)GNMA mortgages are guaranteed solely by the FHA.
• D)GNMA was originally established as an agency within the Department of Veteran's Affairs.
• E)If you buy a GNMA security you are accepting the risk of prepayment.

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Definitions:

Revenue Opportunities

Potential scenarios or strategies that can lead to increased income or profits for a business or organization.

Public Utility Corporation

A company that provides essential public services, such as water, electricity, and natural gas, regulated by government entities.

Legislation

The process of making or enacting laws, or the body of laws that have been enacted by a legislative body.

Enforceable

Capable of being put into effect or action according to legal principles or regulations.