Question

U.S. government agency issues are _________.

1) Exempt from federal taxes.
2) Exempt from registration under the Securities Act of 1933.
3) Issued in bearer form only.
4) General obligations of the federal government.

Answer 1

U.S. government agency bonds are exempt from federal taxes and from registration under the Securities Act of 1933.

Step-by-step explanation:

Bonds issued by U.S. government agencies are exempt from federal taxes and exempt from registration under the Securities Act of 1933. However, they are not issued in bearer form only and are not general obligations of the federal government.