Which of the following is not true regarding Federal Agency debt issues from Fannie Mae or Ginnie Mae?
A)Agency debt issues do not have the same guarantee as U.S.Treasury securities.
B)Agency debt issues often have a slightly higher interest rate than U.S.Treasury securities.
C)Agency debt issues are callable before the maturity date.
D)Investing in agency debt issues is simpler than buying and selling U.S.Treasury securities.
E)Agency debt issues are not sponsored by the U.S.government.

Question

Quizplus · Accepted Answer

Agency debt issues, such as those from Fannie Mae or Ginnie Mae, are not necessarily simpler to invest in compared to U.S. Treasury securities. The process for buying, selling, and understanding the specifics of agency debt can be complex due to their unique characteristics, such as callability and the specific type of backing they have. U.S. Treasury securities are often considered the benchmark for simplicity and safety in investment due to their direct obligation of the U.S. government, making them straightforward for most investors.

Which of the Following Is Not True Regarding Federal Agency