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1.
Fannie Mae and Freddie Mac are former US government agencies that are now privately held companies.
False. Fannie Mae and Freddie Mac are former US government agencies that are now publicly listed companies.
2.
The minimum initial investment in a Ginnie Mae bond is _______.
$25,000. The minimum investment for a Ginnie Mae is generally $25,000, although you sometimes can buy them for less than $25,000 on the secondary market, as well as through shares in mutual funds or investment trusts that invest in Ginnie Maes.
3.
Which of the following issue government agency bonds?
Government National Mortgage Association, Federal National Mortgage Association, World Bank agencies. The Government National Mortgage Association (GNMA) and the Federal National Mortgage Association (FNMA), along with other agencies including World Bank-related agencies and those that package student loans, all offer government agency bonds.
4.
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.
5.
Freddie Mac bonds are perceived as safer than Ginnie Mae bonds.
False. Ginnie Mae securities are perceived as safer from default than Freddie Macs.
