All Courses > Bonds > 100
Bonds 109: US Government Agency Bonds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
US government agency bonds historically have provided somewhat higher earnings than Treasury securities.
Choose wisely. There is only one correct answer.
True. Over time, Ginnie Maes, Fannie Maes, and Freddie Macs have had somewhat higher yields than Treasury securities.
2.
The minimum initial investment in a Ginnie Mae bond is _______.
Choose wisely. There is only one correct answer.
$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.
Fannie Mae and Freddie Mac are former US government agencies that are now privately held companies.
Choose wisely. There is only one correct answer.
False. Fannie Mae and Freddie Mac are former US government agencies that are now publicly listed companies.
4.
Of the several risks that US government agency bond investors must consider, perhaps the least likely is ______.
Choose wisely. There is only one correct answer.
Risk of default. Government agency bonds are implicitly backed by the faith and credit of the US government.
5.
Ginnie Mae, Fannie Mae, and Freddie Mac all combine mortgages into pools and then issue units in these pools to investors as bonds.
Choose wisely. There is only one correct answer.
True. Ginnie Mae, Fannie Mae, and Freddie Mac all buy mortgages from financial institutions that made the loans and group them into pools. They then sell units in these pools to investors by issuing bonds through various financial institutions.