Rule 2 of 32 in this unit2.1.2

2.1.2 Debt Instruments

SIE outline 2.1.2

Agency or Enterprise

A federal agency is an arm of the government. A sponsored enterprise is private, chartered by Congress. NOT one category with one guarantee.

The trick

Common trap: Agency in the stem means government-guaranteed. Correct: Only Ginnie Mae's paper carries full faith and credit. Read the issuer, not the label.

The method for this kind of question
  1. Section 2 is the heaviest block

Now answer

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