1. Which of the following is true regarding U.S. Government Agency Securities? a

Question

1. Which of the following is true regarding U.S. Government Agency Securities?

a. They carry the federal government's full faith and credit guarantee.

They do not carry the federal government's full faith and credit guarantee.

c. They are insured by the FDIC.

d. They are treated the same as U.S. Treasury bonds with regard to the federal government's full faith and credit guarantee.

a. They carry the federal government's full faith and credit guarantee.

They do not carry the federal government's full faith and credit guarantee.

c. They are insured by the FDIC.

d. They are treated the same as U.S. Treasury bonds with regard to the federal government's full faith and credit guarantee.

Explanation / Answer

The US government Agency Securities do not carry the governments full faith and credit guarantee.

Hence the correct option is

B. They do not carry the federal government's full faith and credit guarantee

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