_____ agencies are privately owned agencies that issue securities and use the proceeds to support the granting of certain types of loans to farmers, students, homeowners, and others.
A) General obligation
B) Municipal bond
C) Federally sponsored
D) Original issue discount

Question

Quizplus · Accepted Answer

Federally sponsored agencies are privately owned agencies that receive support from the government and issue securities to raise funds to support the granting of certain types of loans, such as those for farmers, students, homeowners, and others. These agencies include entities such as Fannie Mae, Freddie Mac, and Sallie Mae. General obligation bonds and municipal bonds are issued by government entities, while original issue discount refers to a type of bond that is sold at a discount and redeemed for its full face value at maturity.

_____ Agencies Are Privately Owned Agencies That Issue Securities and Use