SIE practice questioneasyAgency bonds
Which of the following is an example of a U.S. government agency bond?
- AFederal Farm Credit Bank bond✓ Correct answer
- BTreasury bill
- CMunicipal revenue bond
- DCommercial paper
Explanation
Why A — Federal Farm Credit Bank bond
Federal Farm Credit Bank bonds are issued by a government-sponsored enterprise, making them agency bonds. Treasury bills are direct government obligations, while municipal bonds and commercial paper are not agency bonds.
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