Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Series 7 > Governemnt Securities > Flashcards

Governemnt Securities Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 7 Top-off Exam flashcards
0
Q

Treasury Notes/ T notes

A 
Sold with a. Fixed interest rate coupon
Pay interest semi annually
Miniumun denomination of $1000
Maturities of 2-10 years
Never callable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
1
Q

Treasury bills:

A

Short term maturities( 1,3,6,12 month)
Sold at discount
Do not pay interest no coupon
Miniumun denominations $100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Treasury Bonds/ T bonds

A 
Soled fixed interest rate, coupon rate
Pay interest semi annually 
Minimum denomination of $1000
Mature 10-30years
Can be issued as callable
LONG BOND
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Treasury bills are direct_________debt obligations of federal government and offer investors extremely _______investment of the __________quality

A

Short term debt, liquid, highest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

T BIlls can be redeemed at?
Only US govt security always sold at?
T bills do not have what kinds of risk?

A

Maturity, sold at a discount, reinvestment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Tbills are _______from what kinds of income taxes?

A

Exempt from state and local BUT SUBJECT TO FED INCOME TAX

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

TBills Taxation as_________to investors and NOT as a __________.

A

Interest income, capital gain.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

TBills are fully marketable and can be sold ___________, but are ____________until maturity. They also are _________ _________ prior to maturity.

A

Secondary market, not redeemable, not callable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Matures of a TBill are:

A

1month. 4 weeks
3 month, or 13 weeks
6 month or 26 weeks
12 month or 52 weeks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

For TBills, the 4 week 13 week and 26 week bills are auctioned when and settle when?

A

Auctioned every Monday, and settle Thursday T+3

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A 52 week TBill auction is?

A

Monthly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

3 and 6 month TBills are sold at_________auctions conducted by who?

A

Weekly, FRB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Non-competitive orders from the public are always___________.

A

Filled first. Average price also called the competitive tender price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Regular way settlement for TBills sold at auction is______. Regular way settlement for TBills sold in secondary market is _______.

A

T+3, T+1

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Quotations for TBills are quotes on a _________. When looking at quotes the Bid is________than the Ask, because it is quoted at the amount of the discount.

A

Discounted yield basis, higher

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Basis points on $1,000,000 TBills are equal to the following

  1. _______on a 12 month
  2. _______on a 180 day
  3. _______on a 3 month
A

$100, 50, 25

16
Q

TBills Are held in what kind of form

A

Book entry form, like a receipt

17
Q

TBills help to finance the what of the federal budget

A

Deficits

18
Q

Regular way settlement for Tnotes and Tbonds are

A

Regular way settlement T+1

19
Q

Treasury Inflation-Protected Securities (TIPs) are

A

Treasury notes and bonds where the interest and redemption payments are indexed to the current inflation rate base on the Consumer Price Index

20
Q

The final payment of the TIP cannot be________than what the investor originally paid

A

Less

21
Q

If a dealer sells treasury securities with an agreement to repurchase them a short time later, the agreement is own as

A

Repurchase agreement, repos have little or no: price risk, credit risk, liquidity risk. Interest is comparable to the federal fund rates

22
Q

Primary dealers are

A

Certain domestic broker dealers foreign broker dealers doing business in the US. Commercial banks and government securities trust accounts authorized to buy and sell government securities directly with the FED

23
Q

In order to become a primary dealer in the US government securities the firm must be______as such by_______

A

Recognized, Federal reserves open market committee (FOMC)

24
Q

Open market operations the Fed desk deals with?

In the auction the fed desk deals with?

A

Primary dealers, primary dealers and individuals

25
Q

Dutch auction:

A

Is a system use by FED banks system where the price of newly issued TBIlls is gradually lowered until it meets a responsive bid and is sold.

26
Q

US treasury securities are subject to:

A

Inflationary or purchasing power, interest rate risk, market risk

They are not subject to credit or default risk, since guaranteed by govt

27
Q

Accrued interest on the us US Government bond or notes is computed on the?

A

Actual number of days in the month 365 days, up to but not including settlement date. Remember knuckles.

28
Q

An investor looking for safety of principal and some income would consider investing in

A

Treasury notes and treasury bonds

29
Q

Government sponsored agencies are considered what type of investment?

A

Low risk

30
Q

Government sponsor agencies are also considered:

A

Are not direct obligations of the US govt, quoted in 32nds as percentage of par value. Are exempt from securities act 1933

31
Q

Fannie Mae

A

Publicly owned trades on NYSE, buys mortgage from lenders, are not guaranteed by us govt., pay interest semiannually and fully tax at all levels, callable or non callable

32
Q

Ginnie Mae

A

Offers undivided pool of mortgages guaranteed by the us govt. the pass through monthly principal and interest made by home owners payments guaranteed by us govt. min 25k. A portion of ROC is NOT taxed but remaining is taxed on all levels

33
Q

Freddie Mac

A

Conventional’ publicly owned trade on NYSE. Pass through is conventional, 25k held in book entry form. Fully taxable at
all levels

34
Q

Sallie Mae

A

Purchase student loans, publicly traded, backed by insured loans and trades on NYSE. Pay semi annual interest. Quoted in 32nds, less credit risk . DOES NOT ISSUE LEAPS.

35
Q

Federal farm credit system

A

Provides services to farmers and farm related business and computer technology: contains fed land bank, fed intermediate credit bank(covers farm operating risk), bank for cooperatives. Notes are discounted, not callable. Not guaranteed trade in 32nds,

36
Q

Federal home loan banks:

A

12 regional cooperative banks that us lending institutions use to finance housing and economic development, non callable expempt from state tax! safe investment.

37
Q

STRIPS

A

Offer investors the ability to purchase certificates which represents a portion of a trust with a tbond: deep discounts accreted and taxed annually very volatile. All interest paid at maturity. Able to lock in rate of return

38
Q

Interest and principal payments on stripped bonds are _____________and therefore are of the________.

A

Guaranteed by the US treasury and highest quality

Series 7 (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions