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.
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