In comparison to securities issued by the U.S. Treasury, securities issued by U.S. government agencies
A) are significantly riskier than Treasury securities.
B) are much less liquid than Treasury securities.
C) yield slightly more than Treasury securities.
D) usually require the payment of higher commissions than Treasury securities.

Question

Quizplus · Accepted Answer

Securities issued by U.S. government agencies, such as Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, can be considered slightly riskier than Treasury securities, but are still considered relatively safe investments. These securities often yield slightly more than Treasury securities due to their slightly higher risk profile. However, they are still generally considered to be very liquid and do not typically require the payment of higher commissions than Treasury securities.

In Comparison to Securities Issued by the U