The Yield Spread Between Treasury Securities and Government Agency Securities

question 15

Multiple Choice

The yield spread between Treasury securities and government agency securities is due to the fact that

• A)the agencies may go bankrupt.
• B)agency securities are not as liquid as Treasuries.
• C)secondary markets for agency securities have greater depth and breadth than primary markets for Treasuries.
• D)Both a and c are correct.

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Definitions:

Biceps Femoris

A muscle of the posterior thigh that is part of the hamstrings group, involved in knee flexion and thigh extension.

Semitendinosus

A muscle located in the back of the thigh, part of the hamstrings group, involved in flexing the knee and extending the hip.

Depresses Mandible

The action that lowers the lower jaw, typically involving muscles like the digastric muscle.