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1.
Freddie Mac bonds are perceived as safer than Ginnie Mae bonds.
False. Ginnie Mae securities are perceived as safer from default than Freddie Macs.
2.
Compared to Fannie Mae, Freddie Mac _______.
Is growing faster. Freddie Mac is currently growing faster, partly due to its smaller market share.
3.
One way you can purchase your first Ginnie Mae bond for less than $25,000 is _______.
On the secondary market. You sometimes can buy Ginnie Maes that are selling for less than $25,000 on the secondary market if their interest rates are low compared to more recent issues or if their principals have been substantially reduced.
4.
One advantage of government agency bonds is _______.
Higher return potential than that of Treasury securities. Agency bonds generally offer higher returns than Treasury securities do, along with higher volatility as the market for these securities responds to changes in mortgage rates.
5.
US government agency bonds historically have provided somewhat higher earnings than Treasury securities.
True. Over time, Ginnie Maes, Fannie Maes, and Freddie Macs have had somewhat higher yields than Treasury securities.
