Home > Income > Beginner
Income Beginner: Introduction to Government 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.
Which of the following agencies does not issue mortgage-backed securities?
Choose wisely. There is only one correct answer.
The US Post Office. The others were created for mortgage purposes.
2.
________ are redeemed by the US government rather than sold on exchanges.
Choose wisely. There is only one correct answer.
Non-marketable US bonds. They are called "non-marketable" because they cannot be sold on markets, and exchanges are markets.
3.
Why were collateralized mortgage obligations introduced to the market?
Choose wisely. There is only one correct answer.
To reduce the prepayment risks that arise from refinanced mortgages. Investors can reduce their risks by choosing different maturities to invest in.
4.
Many investors consider government bonds the safest of all bonds because _______.
Choose wisely. There is only one correct answer.
They are backed by the credit of the US government. The US government is considered to have the best ability to repay bonds and bond interest.
5.
Treasury notes are sold through auctions.
Choose wisely. There is only one correct answer.
True. They are sold this way, using bids.
6.
How often do Treasury bonds pay interest?
Choose wisely. There is only one correct answer.
Semi-annually. They pay interest twice per year.