In comparison to securities issued by the U.S. Treasury, securities issued by U.S. government agencies like the Federal Home Loan Bank
A)are significantly riskier than Treasury securities.
B)are much less liquid than Treasury securities.
C)yield slightly more than Treasury securities.
D)usually require the payment of higher commissions when purchased than Treasury securities.

Question

Quizplus · Accepted Answer

Securities issued by U.S. government agencies like the Federal Home Loan Bank are less risky than corporate bonds but riskier than Treasury securities. They also offer slightly higher yields than Treasury securities as they are not backed by the full faith and credit of the U.S. government. However, they are still considered relatively safe investments. The liquidity of government agency securities varies and can depend on the specific agency and issue. Commissions on agency securities are generally not higher than commissions on Treasury securities.

In Comparison to Securities Issued by the U