Which One of the Following Statements Correctly Describes the Unique

question 117

Multiple Choice

Which one of the following statements correctly describes the unique feature of GNMA pass-through securities?

• A) The interest income on a GNMA is exempt from state and federal tax.
• B) GNMAs consistently have lives of 25-30 years.
• C) GNMAs are backed by the full faith and credit of the issuing state.
• D) GNMAs pay income to holders on a monthly basis.

---

Definitions:

"IOU"

An informal document acknowledging a debt.

UCC

A set of detailed legislative provisions known as the Uniform Commercial Code is designed to oversee commercial activities across the United States.

Negotiable Instruments

Legal documents guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Article 3

This term could refer to various documents, but generally pertains to a section or part within a larger document that outlines specific provisions or regulations.