Income Beginner:
Introduction to Government Bonds
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
Treasury note maturities can last as long as ________ years.
Choose wisely. There is only one correct answer.
Five
Ten
Thirty
Forty
Ten. Ten years is the maximum maturity.
2.
Which of the following agencies does not issue mortgage-backed securities?
Choose wisely. There is only one correct answer.
Fannie Mae
The US Post Office
Freddie Mac
The US Post Office. The others were created for mortgage purposes.
3.
Many investors consider government bonds the safest of all bonds because _______.
Choose wisely. There is only one correct answer.
They are not part of the private sector
Many of them have long maturities
They are backed by the credit of the US government
All of the above
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.
4.
Treasury bond maturities can last as long as ________ years.
Choose wisely. There is only one correct answer.
Ten
Twenty
Thirty
Fifty
Thirty. Thirty years is the maximum maturity.
5.
On _______bonds, the owner can defer taxes on interest until the bond is redeemed.
Choose wisely. There is only one correct answer.
Series EE
Series HH
Treasury
Series EE. The owner can pay taxes annually or defer taxes on interest until the bond is redeemed.
6.
Investors in collateralized mortgage obligations choose interest and principal slices based on their desired ________.
Choose wisely. There is only one correct answer.
Yields
Income
Maturities
Maturities. They invest according to the bonds' maturities.
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DONE