Which One of the Following Statements Correctly Relates to GNMA

question 33

Multiple Choice

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

• A) The primary risk associated with GNMAs is default risk.
• B) The minimal denomination of a GNMA when issued is $10,000.
• C) GNMA mortgages are guaranteed solely by the FHA.
• D) GNMAs were originally established as an agency within the Department of Veteran's Affairs.
• E) If you buy a GNMA you are accepting the risk of prepayment.

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Definitions:

Prejudice

An opinion or judgment formed in advance about an individual or object without logical grounds or firsthand experience.

Discrimination

Unfair or prejudiced treatment of individuals based on their characteristics, such as race, age, sex, or sexual orientation.

Stereotyping

The act of assigning a fixed set of characteristics to members of a particular group, often oversimplifying individual differences and promoting generalizations.

Robber's Cave Experiment

A study on intergroup conflict and cooperation conducted in 1954 by social psychologist Muzafer Sherif, highlighting the ease of inducing conflict and the effectiveness of superseding goals in reducing it.