Security Test Chapter 5

True or False: If revenue falls short, payments on moral obligation bonds only begin with legislative approval.

• TRUE

• FALSE

All winners of a Treasury auction will ultimately pay the _____________ price of the ____________ competitive tenders.

Revenue bonds are backed by _______________ generated by __________.

A competitive bid placed at a Treasury auction will indicate both _______ and ____________.

Negotiable CSs (also called Jumbo CDs) have a minimum denomination of $___________.

True or False: Agency-backed CMOs have high credit ratings.

• True. They are usually highly rated because of the collateral backing them.

• False

True or False: FNMA and FHLMC securities are backed by the full faith and credit of the U.S. Treasury.

• True

• False. GNMA securities are government guaranteed, but FNMA and FHLMC securities are not.

The type of bond where bondholders have a lien on real property is called a __________________.

The type of bond that's backed by credit card receivables or home equity loans is considered an _____________.

Though subject to federal tax, interest on Treasuries is exempt from __________ and ___________tax.