Which of the following statements is/are true as applied to U.S. agency debt?
I. It is equally as risky as Treasury debt.
II. It is frequently subject to state taxes.
III. It has the same credit guarantee as U.S. Treasury debt.
IV. It generally has a lower yield than U.S. Treasury debt with the same maturity.
A)II only
B)III only
C)I and III only
D)III and IV only
E)I, III, and IV only

Question

Quizplus · Accepted Answer

II onlyU.S. agency debt does not have the same credit guarantee as U.S. Treasury debt, making it slightly riskier, which is why it generally offers a higher yield than Treasury debt of the same maturity. However, it is frequently subject to state taxes, distinguishing it from U.S. Treasury debt which is often exempt from state and local taxes.

Which of the Following Statements Is/are True as Applied to U.S