Which of the following statements about U.S. Agency bonds are true?

I. They are backed by the "full faith and credit" of the U.S. government.
II. Their risk is almost as low as government notes and bonds.
III. Their yields are slightly higher than those of government securities.
IV. They are exempt from state and federal taxes.

A) I, II and IV only
B) I, III and IV only
C) II and III only
D) I and IV only


Answer: C

Business

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