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Question 1 of 10
1. Question
Which of the following is not a type of treasury security?
Correct
Treasury bills, Treasury bonds and Treasury notes are the three types of treasury securities.
Incorrect
Treasury bills, Treasury bonds and Treasury notes are the three types of treasury securities.
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Question 2 of 10
2. Question
Which of the treasury securities has the longest maturity?
Correct
Treasury bonds, or T-bonds, bear the longest maturity of any of the Treasury securities. T-bonds are issued at par with fixed interest and maturities of greater than ten years.
Incorrect
Treasury bonds, or T-bonds, bear the longest maturity of any of the Treasury securities. T-bonds are issued at par with fixed interest and maturities of greater than ten years.
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Question 3 of 10
3. Question
Which of the following applies to bonds bought at a premium?
Correct
Premiums are amortized (decreased), with the annual amortization amount being subtracted from the investor’s reported income.
Incorrect
Premiums are amortized (decreased), with the annual amortization amount being subtracted from the investor’s reported income.
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Question 4 of 10
4. Question
What is the maturity period for treasury notes?
Correct
Treasury notes are medium-term debt obligations issued by the United States government. Maturity dates range between one and ten years.
Incorrect
Treasury notes are medium-term debt obligations issued by the United States government. Maturity dates range between one and ten years.
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Question 5 of 10
5. Question
Identify the false statement about T-bonds.
Correct
Treasury bonds, or T-bonds, bear the longest maturity of any of the Treasury securities. They have a fixed interest rate, which is determined through a competitive bidding process. Treasury bonds are backed by the full faith and credit of the United States government.
Incorrect
Treasury bonds, or T-bonds, bear the longest maturity of any of the Treasury securities. They have a fixed interest rate, which is determined through a competitive bidding process. Treasury bonds are backed by the full faith and credit of the United States government.
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Question 6 of 10
6. Question
Which of the following is a shared characteristic between treasury notes and treasury bonds?
Correct
They both have a fixed interest rate determined through a competitive bidding process.
Incorrect
They both have a fixed interest rate determined through a competitive bidding process.
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Question 7 of 10
7. Question
Which of the following is an actual federal agency authorised to issue debt securities?
Correct
Actual federal agencies authorized to issue debt securities are the Farm Credit Administration and the Government National Mortgage Association (GNMA, or Ginnie Mae). Quasi-governmental agencies authorized to issue debt securities are: Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), Federal National Mortgage Association (FNMA, or Fannie Mae), and Student Loan Marketing Association (SLMA, or Sallie Mae).
Incorrect
Actual federal agencies authorized to issue debt securities are the Farm Credit Administration and the Government National Mortgage Association (GNMA, or Ginnie Mae). Quasi-governmental agencies authorized to issue debt securities are: Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), Federal National Mortgage Association (FNMA, or Fannie Mae), and Student Loan Marketing Association (SLMA, or Sallie Mae).
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Question 8 of 10
8. Question
The following do not offer securities backed by the U. S government except:
Correct
Actual federal agencies authorized to issue debt securities are the Farm Credit Administration and the Government National Mortgage Association (GNMA, or Ginnie Mae). Quasi-governmental agencies authorized to issue debt securities are: Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), Federal National Mortgage Association (FNMA, or Fannie Mae), and Student Loan Marketing Association (SLMA, or Sallie Mae). Except for Ginnie Mae, securities offered by these agencies are not backed by the full faith and credit of the U.S. government, so they pay higher interest than Treasury securities, though lower interest than private bonds.
Incorrect
Actual federal agencies authorized to issue debt securities are the Farm Credit Administration and the Government National Mortgage Association (GNMA, or Ginnie Mae). Quasi-governmental agencies authorized to issue debt securities are: Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), Federal National Mortgage Association (FNMA, or Fannie Mae), and Student Loan Marketing Association (SLMA, or Sallie Mae). Except for Ginnie Mae, securities offered by these agencies are not backed by the full faith and credit of the U.S. government, so they pay higher interest than Treasury securities, though lower interest than private bonds.
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Question 9 of 10
9. Question
Which of the following securities pay the highest interest?
Correct
Actual federal agencies authorized to issue debt securities are the Farm Credit Administration and the Government National Mortgage Association (GNMA, or Ginnie Mae). Quasi-governmental agencies authorized to issue debt securities are: Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), Federal National Mortgage Association (FNMA, or Fannie Mae), and Student Loan Marketing Association (SLMA, or Sallie Mae). Except for Ginnie Mae, securities offered by these agencies are not backed by the full faith and credit of the U.S. government, so they pay higher interest than Treasury securities, though lower interest than private bonds.
Incorrect
Actual federal agencies authorized to issue debt securities are the Farm Credit Administration and the Government National Mortgage Association (GNMA, or Ginnie Mae). Quasi-governmental agencies authorized to issue debt securities are: Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac), Federal National Mortgage Association (FNMA, or Fannie Mae), and Student Loan Marketing Association (SLMA, or Sallie Mae). Except for Ginnie Mae, securities offered by these agencies are not backed by the full faith and credit of the U.S. government, so they pay higher interest than Treasury securities, though lower interest than private bonds.
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Question 10 of 10
10. Question
Regarding Quasi-governmental agencies, the following are true except:
Correct
Government agency bonds are not the same as U.S. Treasury or municipal bonds, but pertain to agencies of the federal government. (They also can pertain to quasi-governmental agencies, which are privately operated though either being originally part of the federal government or being sponsored by the federal government.) They are not guaranteed in the same way that Treasury securities are.
Incorrect
Government agency bonds are not the same as U.S. Treasury or municipal bonds, but pertain to agencies of the federal government. (They also can pertain to quasi-governmental agencies, which are privately operated though either being originally part of the federal government or being sponsored by the federal government.) They are not guaranteed in the same way that Treasury securities are.