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Federal Home Loan Banks Obtain a Significant Amount of the Funds

Question 7

Multiple Choice

Federal Home Loan Banks obtain a significant amount of the funds they lend to thrifts from the sale of FHLB bonds in the capital market.These bonds are:


A) guaranteed by the US government
B) not guaranteed,but the thrifts are required to purchase them in order to receive loans from a FHLB
C) not guaranteed,but provide a high rate of return when compared to less risky bonds
D) not guaranteed,but the banks operate under a federal charter and government supervision

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