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

Find out what you learned

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.
One way you can purchase your first Ginnie Mae bond for less than $25,000 is _______.
Choose wisely. There is only one correct answer.
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.
3.
Compared to Fannie Mae, Freddie Mac _______.
Choose wisely. There is only one correct answer.
Is growing faster. Freddie Mac is currently growing faster, partly due to its smaller market share.
4.
Which of the following issue government agency bonds?
Choose wisely. There is only one correct answer.
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.
5.
The extension risk increases the amount of money the investor has to buy other securities at a time of high interest rates.
Choose wisely. There is only one correct answer.
False. The extension risk reduces the amount of money the investor has to buy other securities at a time of high interest rates, as the investor's bond pays more slowly when payment of the home mortgages in the pool is extended longer than planned.
DONE