Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
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.
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.
Freddie Mac bonds are perceived as safer than Ginnie Mae bonds.
False. Ginnie Mae securities are perceived as safer from default than Freddie Macs.
4.
Compared to Fannie Mae, Freddie Mac _______.
Is growing faster. Freddie Mac is currently growing faster, partly due to its smaller market share.
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.
