Governemnet Securities Questions Flashcards
Of the following statements regarding Government National Mortgage Association securities what is correct?
GNMA securities are issued by a federal agency of the US
What is true of zero coupon US govt bonds?
Interest is taxable to the investor each year AND interest and principal payments are guaranteed by the us govt.
What is true of federal Agency issues?
They are quoted in 32nds as a percentage of par value
All the following are true of government agency issues EXCEPT:
They represent direct obligations of the federal government, and they are not obligations of the federal government but are obligations of the agency itself
What is true of the following government agency issues?
They are exempted from the registration requirements of the securities act of 1933
Which of the following agencies is backed by the full faith and credit of the US government and pays interest and principal monthly?
GNMA, GGG ginnie maes are guaranteed by the US government
Characteristics of the US T Bill includes?
A maturity of one year or less, US TBills are very liquid and are short term securities that are expempt from state tax, sold on a discount
With the exception of Ginnie Maes and Fannie maes, government agency securities have which of the following characteristic
A high degree of safety
Treasury inflation-indexed securities tips pay interest semi-annually based on the ?
Inflation-adjusted principal
US TBills have initial matures of all of the following except?
A two month, because matures 1,3,6,12
