Treasury securities have ____ risk of default and mortgage-backed securities have ____ risk of default.

Question

Quizplus · Accepted Answer

Treasury securities are issued by the U.S. government and are considered to have no risk of default due to the government's ability to raise taxes or print money to meet its obligations. Mortgage-backed securities, however, are backed by mortgage payments from homeowners and carry some risk of default if borrowers fail to make their payments.

Treasury Securities Have ____ Risk of Default and Mortgage-Backed Securities