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1.
Why does the US government sell bonds?
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To fund its programs and meet its expenses. The US government often finds it useful to seek funds from the public.
2.
Which of the following agencies does not issue mortgage-backed securities?
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The US Post Office. The others were created for mortgage purposes.
3.
Treasury bond maturities can last as long as ________ years.
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Thirty. Thirty years is the maximum maturity.
4.
What is used for collateral for collateralized mortgage obligations?
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Pools of mortgages. These pools back CMOs in the event of default.
5.
Treasury notes are sold through auctions.
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True. They are sold this way, using bids.
6.
On _______bonds, the owner can defer taxes on interest until the bond is redeemed.
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Series EE. The owner can pay taxes annually or defer taxes on interest until the bond is redeemed.