SIE practice questionmediumAgency Bonds — GNMA
Which of the following U.S. government agency securities is backed by the full faith and credit of the U.S. government?
- AFederal National Mortgage Association (Fannie Mae) bonds
- BGovernment National Mortgage Association (Ginnie Mae) securities✓ Correct answer
- CFederal Farm Credit System bonds
- DFederal Home Loan Mortgage Corporation (Freddie Mac) bonds
Explanation
Why B — Government National Mortgage Association (Ginnie Mae) securities
Ginnie Mae (GNMA) is the only agency whose securities carry the full faith and credit guarantee of the U.S. government. Fannie Mae and Freddie Mac are government-sponsored enterprises (GSEs) — their securities carry an implied government backing but NOT an explicit guarantee. Federal Farm Credit bonds also lack a direct government guarantee.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Debt Securities questions
- What is the primary purpose of creating tranches in a Collateralized Mortgage Obligation (CMO)?
- What distinguishes Treasury notes from Treasury bonds?
- A debenture is a type of corporate bond that is:
- Which of the following is TRUE about U.S. Treasury bills (T-bills)?
- A convertible bond has a par value of $1,000 and a conversion price of $50. What is the conversion ratio?
- A customer wants to invest in a U.S. Treasury security with a 10-year maturity and semiannual interest payments. Which…
- A general obligation (GO) municipal bond is backed by:
- A customer is considering investing in municipal bonds for tax-advantaged income. Which statement about municipal bonds…