Which of the following statements are true as applied to U.S.agency debt?
I.It is equally as risky as Treasury debt.
II.It is frequently subject to state taxes.
III.It has the same credit guarantee as U.S.Treasury debt.
IV.It generally has a lower yield than U.S.Treasury debt with the same maturity.
A) II only
B) III only
C) I and III only
D) III and IV only
E) I, III, and IV only

Question

Quizplus · Accepted Answer

U.S. agency debt is often subject to state taxes, unlike Treasury debt which is exempt. It is not equally risky as Treasury debt and does not have the same credit guarantee, as it is not backed by the full faith and credit of the U.S. government. It generally has a higher yield than Treasury debt due to the slightly higher risk.

Which of the Following Statements Are True as Applied to U.S.agency